Apple raises Mac and iPad prices by up to 20 per cent as AI-driven memory shortage bites

Apple confirmed on Thursday that it is charging more for Mac computers and iPad tablets, pointing to a shortage of memory chips driven by the rapid growth of artificial intelligence.

The technology giant, headquartered in Cupertino, California, described the surge in demand as an "unprecedented challenge" facing makers of consumer electronics.

In a written statement, the company said: "The rapid expansion of AI data centres has created an extraordinary surge in demand for memory and storage. We have never seen a component price increase this much, this quickly."

Among the revised price tags, the entry-level MacBook Neo rises to US$699 from US$599. The 512 gigabyte MacBook Air now sells for US$1,299, up from US$1,099, while the one terabyte MacBook Pro climbs to US$1,999 from US$1,699.

On the tablet side, the 128 gigabyte iPad Air is priced at US$749, previously US$599. The 256 gigabyte iPad Pro Wifi now costs US$1,199, up from US$999.

Market watchers believe iPhone pricing will move higher before the year ends.

Nabila Popal, an analyst at IDC, said the scale of the latest increases exceeded her forecasts, signalling that iPhone adjustments could also surpass expectations — possibly by as much as US$200 on Pro and Pro Max handsets.

"I think the days of US$50 price increases are over," she said.

Apple acknowledged it had absorbed rising component costs for as long as possible, but stated: "we have now reached a point where we need to begin raising prices on a number of products, including today's increases for iPad and Mac. We know this is not welcome news, and we are working tirelessly to find solutions."

The company's stock dropped US$13.29, or 4.5 per cent, to US$279.88 during Thursday afternoon trading.