On June 25, Apple implemented global hardware price increases across Macs, iPads, Vision Pro, and home devices, with rises ranging from around 5% to more than 50%, while keeping iPhone prices unchanged. Hours later, Microsoft announced Xbox Series S and X price hikes of $100 and $150 respectively, alongside the discontinuation of its 2TB model.
As MSN reports, both companies pointed to sharply higher memory and storage costs linked to AI-driven demand, stating they had previously absorbed these increases but could no longer do so.
Why is the AI Chip Shortage Hitting Consumers Now?
The expansion of AI data centers has led memory manufacturers such as Micron and SK Hynix to shift capacity toward high-bandwidth chips for AI servers, reducing output of consumer-grade DRAM and NAND. This reallocation has driven costs up steeply, with DRAM prices climbing by as much as 98% in the first quarter of 2026 and memory and storage prices quadrupling over recent quarters.
Apple’s Tim Cook described the situation as “unprecedented” in over 40 years, while Microsoft reported console storage prices have risen more than 2.5 times and could double again by 2027.
What’s Going Up (and by How Much)?
Apple’s increases range from $100 on entry-level iPads to $1,300 on the Mac Studio M3 Ultra, with percentage jumps as high as 54% for Apple TV 4K.
Microsoft’s Xbox Series S 512GB will rise by $100, while the 1TB version will increase by $150. These adjustments follow prior hikes in 2025 and earlier in 2026, underscoring that costs are not stabilizing.
Where Could Prices Head Next?
If AI infrastructure spending continues at its current pace, shortages may persist into 2027, prompting further hikes on flagship devices like iPhones and Apple Watches.
In one scenario, manufacturers pass through incremental increases to protect margins, which could slow consumer upgrades and reduce overall sales volumes.
Alternatively, if memory suppliers expand capacity for consumer chips, prices could stabilize by late 2027, but only if AI hardware demand levels off—something current hyperscaler investment trends do not indicate.
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