Apple raised prices on MacBooks and iPads on Thursday by as much as 20 per cent, citing an "extraordinary surge" in demand for memory and storage chips driven by the rapid expansion of AI data centres.

The increases, which Apple said represented its first formal move to pass higher component costs on to customers, affect a wide range of devices. The MacBook Air with 512 gigabytes of storage rose to $1,299 from $1,099, the MacBook Pro with one terabyte of storage to $1,999 from $1,699, and the iPad Air to $749 from $599. The MacBook Neo, Apple's entry-level laptop launched in March, has increased from $599 to $699 months after its debut.

"The consumer electronics industry is facing an unprecedented challenge," Apple said in a statement. "We have never seen a component price increase this much, this quickly."

Prices of dynamic random access memory rose as much as 98 per cent in the first quarter of 2026 and are expected to climb a further 58 to 63 per cent in the current quarter, according to industry tracker TrendForce. Memory suppliers including Samsung, SK Hynix, and Micron have prioritised orders from AI chipmakers such as Nvidia, leaving reduced supply for consumer electronics manufacturers.

Chief executive Tim Cook had signalled the changes in an interview with the Wall Street Journal published on 17 June, describing the situation as "unsustainable". "This is a hundred-year flood," he told the publication. "I've never seen anything like it in any area in over 40 years."

Apple shares fell nearly 5 per cent on Thursday, their worst single-day decline since February, while shares in rival Dell dropped more than 8 per cent. Analysts warned that competing device makers, which lack Apple's supplier relationships, may face steeper increases. "The memory environment is tough and remains structurally tough for the foreseeable future," said Ben Bajarin, chief executive of technology consulting firm Creative Strategies.

Nabila Popal, senior research director at IDC, told Reuters that iPhones would not escape the pressures indefinitely. "The iPhone isn't spared, its hike is coming," she said, adding that Apple had been strategic in announcing the increases ahead of the autumn iPhone launch so the product news rather than price rises dominates those headlines.

IDC estimates the global smartphone market will see its largest-ever annual decline of nearly 14 per cent this year, with the PC market falling 11.3 per cent. Apple said it had not included iPhones in Thursday's announcements and was "working tirelessly to find solutions".

The company is expected to launch its first foldable smartphone later this year, which analysts have predicted could retail for as high as $2,000 at launch.

Elsewhere, game publisher Valve has announced the pricing of its delayed Steam Machine PC-games console hybrid starting at an eye-watering $1,049, with an engineer at the company admitting to Rock Paper Shotgun that the device is “definitely more expensive than we hoped” and that “some people are going to be priced out” as a result of the memory shortage.

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