AI chip boom forces Apple to raise iPad and Mac prices

TL;DR:

• Apple has raised iPad and Mac prices, saying it can no longer absorb soaring memory and storage chip costs driven by the AI data centre build-out.
• Memory prices have surged as makers prioritise AI chipmakers like Nvidia; DRAM rose up to 98% in Q1 2026 and may climb a further 58–63%.
• Analysts expect iPhone rises next, with the smartphone market forecast to fall nearly 14% this year.

The cost of the AI infrastructure boom is now reaching consumers’ pockets. Apple has raised prices on iPads and Macs, saying it can no longer shield customers from the surge in memory and storage chip costs created by the data centre build-out. The starting price of its cheapest laptop, the Neo, rose from $599 to $699 (about £550) just months after launch, while some MacBook configurations went up by $200–$300.

‘Ram-ageddon’ reaches the shelves

The squeeze stems from memory makers such as Micron prioritising orders from AI chipmakers like Nvidia, leaving little supply for consumer-electronics firms. Prices of DRAM — used in virtually every modern device — rose as much as 98% in the first quarter of 2026 and are set to climb another 58–63% this quarter, according to TrendForce; some analysts have dubbed it “Ram-ageddon”. Micron said it had locked in $22bn of long-term customer commitments. “We have never seen a component price increase this much, this quickly,” Apple said.

Even Apple’s enviable supply-chain relationships offered only partial cover: its shares fell nearly 5% and rival Dell more than 8%, and analysts at IDC expect iPhone rises to follow.

The other side of the AI capex story

For UK readers, the episode is a concrete reminder that the vast spending behind the AI boom has physical consequences beyond data centres and valuations. The same memory demand sits behind supply deals like Micron’s tie-up with Anthropic — and it is now feeding through to the price British households and businesses pay for laptops and tablets.

Looking forward

With IDC forecasting the smartphone market’s biggest-ever annual decline of nearly 14% and PCs down 11.3%, the memory crunch is set to weigh on device sales worldwide through the year. For buyers, the practical takeaway is simple: hardware refresh budgets may need to stretch further while AI capital spending keeps memory scarce.