Apple raises iPad and MacBook prices, blaming cost of chips amid AI boom

Apple increased prices for its iPad and MacBook lines on June 25, 2026, citing the escalating costs of memory and storage chips. The company stated it could no longer absorb these expenses, which are largely attributed to the increased demand from the artificial intelligence industry's expansion of data centers. This price adjustment affects various iPad models and the MacBook Air, with the starting price of the MacBook Air increasing from $599 to $699. While the iPhone, Apple's primary revenue generator, is not currently impacted by these price hikes, the company indicated that similar increases for iPhones could follow. The surge in chip costs is a direct consequence of the AI boom, which requires significant quantities of high-performance memory and storage components for training and running AI models. Apple's decision reflects a broader industry trend where component shortages and increased demand are leading to higher prices across consumer electronics.