Apple increased prices on several of its computer products on Thursday, citing rising costs for memory chips driven largely by demand from artificial intelligence (AI) applications. The company raised prices by as much as $500 on selected MacBook Air and Pro models, while the entry-level MacBook Neo saw a $100 increase. iPads also became more expensive, with price hikes ranging from $100 to $200 depending on the model. However, prices for AirPods and Apple Watches, which do not use significant memory components, remained unchanged.

The surge in memory chip prices has been attributed to increased demand from AI companies, which require large amounts of both temporary and long-term storage for model training and deployment. This shortage is expected to persist through 2027, according to chipmaker Micron’s recent quarterly earnings report. Apple confirmed the unusual jump in component costs, saying it was unprecedented and that the company is actively seeking solutions to mitigate the impact.

While Apple held the price of its current iPhone lineup steady for now, analysts predict an increase with the unveiling of the iPhone 18 series, expected in September. Nabila Popal, a tech analyst at IDC, said the new iPhones could cost $100 to $200 more than their predecessors. Popal noted that early indications of a price hike might help shift consumer focus to new features rather than cost increases when the product is launched.

Avi Greengart, a consumer technology analyst, described the price increases as a notable departure from the historical trend of declining technology costs. He suggested that consumers may find these hikes more surprising and difficult to accept than usual inflation on everyday goods. Greengart also indicated the current iPhone 17 might remain at its existing price when the new model arrives, which would be an unusual pricing strategy for Apple.

Apple is not alone in confronting higher chip costs. Other technology companies have raised prices recently in response to similar supply pressures. Microsoft announced a price increase for its Xbox gaming consoles, adding $100 to $150 starting Aug. 1, and noted it would discontinue its largest 2-terabyte model. Similarly, companies such as Nintendo and Dell have implemented price adjustments on certain products.

The broader industry trend points to sustained memory chip shortages disrupting the consumer electronics market, with manufacturers adjusting retail prices to cope with elevated production costs.