On June 25, 2026, Apple did something unusual for the company: it hiked pricing on a wide variety of its items in the middle of the cycle, with no fanfare. The company secretly removed price from its website, only to reintroduce it with figures that left purchasers scratching their heads. MacBooks, iPads, the HomePod, Apple TV 4K, and even the Apple Vision Pro have all become more expensive. The only noticeable exception? The iPhone. For the time being, Apple Watches and AirPods are exempt from the price increase.
The increases are not small. The M5 MacBook Air now starts at $1,300, up from $1,100, a $200 jump. The 14-inch MacBook Pro has climbed to $2,000 from $1,700, a $300 increase, and the base storage option has been bumped from 512GB to 1TB, meaning there is no longer a cheaper entry point. The Mac Studio saw the steepest absolute jump, rising $500 to $2,500. On the iPad side, the M5 iPad Pro now starts at $1,200, $200 more than before while the M4 iPad Air crossed the $750 mark after a $150 hike. Even the entry-level A16 iPad, typically Apple’s most accessible tablet, went up by $100 to $450. The Apple TV 4K nearly doubled in some configurations, and the HomePod mini jumped by $70 to $200.
“Exclusive: Apple plans to raise prices. CEO Tim Cook called the move ‘unavoidable’ because the AI boom is driving up chip costs.”~The Wall Street Journal
The Culprit: A Global Memory Shortage Fuelled by the AI Boom
The reason behind all of this traces back to one problem: memory chips have become extraordinarily expensive, and the AI industry is largely to blame. Data centres racing to build out AI infrastructure have consumed a massive share of global DRAM and NAND Flash production, leaving far less for consumer electronics manufacturers. According to analyst firm Counterpoint, smartphone DRAM prices surged by 50% and NAND Flash prices jumped over 90% quarter-over-quarter in the first quarter of 2026 alone. Market research firm TrendForce reported that DRAM prices climbed roughly 98% in Q1 2026, with another jump expected in Q2.
Apple had been absorbing these costs for months, using its considerable purchasing power and long-term supply contracts to shield customers. But the situation eventually became untenable. In a statement, Apple said it had “never seen a component price increase this much, this quickly” and acknowledged it had “reached a point where absorbing memory price hikes is impossible unless one wishes to run a business at a major loss.” CEO Tim Cook, speaking to The Wall Street Journal before the hikes went live, called it a “hundred-year flood” something he had never encountered in over 40 years in the industry.
“‘100-Year Flood.’ $AAPL CEO Tim Cook told WSJ, ‘Unfortunately, price increases are unavoidable.’ Tim Cook called it a ‘hundred year flood.’ Unprecedented in his 40+ years. Apple needs more DRAM for upcoming AI features including a rebooted Siri.”~Trade Whisperer
So Why Is the iPhone Different?
This is the question everyone is asking. MacBooks and iPads have taken significant cuts, but the iPhone; Apple’s most popular and profitable device remains at its current price. According to industry observers, the answer rests in what drives expenses within each device.
During Apple’s April earnings call, Tim Cook indicated that iPhone production is currently constrained not by memory, but by the main processing chip. This is a different bottleneck altogether. MacBooks and iPads rely heavily on large pools of unified memory and storage, making them far more exposed to DRAM and NAND price swings. iPhones, by contrast, use comparatively less RAM per unit and are produced in volumes so enormous that Apple’s supply chain leverage remains stronger on that side.
There is also a strategic component. The iPhone is Apple’s most price-sensitive product worldwide, influencing consumer decisions, ecosystem lock-in, and service income. Raising iPhone prices risks a larger sales drop, which Apple cannot afford. According to IDC, Apple’s average selling price is already predicted to jump 12% this year, thanks in part to a more diverse product mix and the expected launch of a foldable iPhone. Raising base iPhone costs on top of that may reduce demand at a critical point.
That said, the relief may be temporary. Reports suggest the iPhone 18 Pro, expected later in 2026, could see prices rise significantly potentially starting as high as $1,299 or even $1,399 as Apple prepares to include 12GB of RAM across all new iPhone models to support its expanded Apple Intelligence and AI-powered Siri features.
“The iPhone 18 Pro could start as high as $1,399 due to rising memory and storage costs. That would be a $300 price increase over the iPhone 17 Pro. Source: @WSJ”~Apple Hub
What Buyers Should Know and Expect Next?
For anyone already planning to buy a MacBook or iPad, the window for old pricing has effectively closed. Some retailers still have older stock at pre-hike prices, and Amazon has held Prime Day deals that offer significant savings compared to Apple’s new official prices. But analysts caution against waiting for prices to come back down.
Bloomberg’s Mark Gurman, one of the most reliable Apple watchers in the industry, made this point bluntly:
“The most wild take I’ve seen on the Apple price increases is that Apple is going to roll back to old pricing once the memory situation is resolved. Not in a million years. Maybe prices of certain configuration upgrades but this is almost certainly the new normal.”~Mark Gurman
That’s arguably the most negative evaluation for Apple customers. The memory crisis did not arise overnight and is not going away soon. Even if chip supply stabilises later this year, Apple has little reason to lower the prices it has already set. What consumers are witnessing today is most likely the new norm and with the iPhone 18 expected to follow suit when it is released, the era of predictable, stable Apple pricing may be over.
