Apple Raises MacBook, iPad Prices by Up to 42% as AI Chip Demand Pushes Costs Higher

Buying a new Apple MacBook or iPad has become significantly more expensive, with the technology giant increasing prices across several models by 20 to 42 per cent globally, including in India . The company says the move has been driven primarily by an unprecedented rise in the cost of semiconductor components, particularly memory chips, as the rapid expansion of artificial intelligence infrastructure continues to reshape the global technology supply chain.

According to the revised pricing on Apple's India website, the 14 inch MacBook Pro with the M5 Pro chip now starts at Rs 2,99,900 , up from its launch price of Rs 2,49,900 , marking an increase of nearly 20 per cent . The price revision is even steeper for the 13 inch iPad Air , whose base variant now costs Rs 1,19,900 , compared to its earlier launch price of Rs 84,900 , representing a jump of more than 41 per cent .

Industry experts believe the increase reflects a much larger transformation taking place in the semiconductor industry.

Neil Shah , Co-founder and Vice President of Research at Counterpoint Research , said the AI revolution has fundamentally changed the cost structure of the global PC and tablet market. Massive investments in AI data centres have sharply increased demand for memory chips, storage and high performance processors, leaving fewer components available for consumer electronics manufacturers.

Apple acknowledged that the consumer electronics industry is facing one of its toughest cost challenges in recent years. In a statement, the company said it had absorbed rising component costs for several months but had now reached a point where continuing to do so was no longer sustainable.

The company noted that explosive growth in AI infrastructure has created extraordinary demand for memory and storage technologies, leading to price increases that have been far more severe than the industry has previously experienced. Apple added that while the decision to increase prices was difficult, it continues to explore ways to minimise the impact on customers.

The impact is not limited to Apple alone. Analysts point out that consumer electronics manufacturers across the industry are facing similar cost pressures, with prices of many devices already climbing by 40 per cent or more .

Memory manufacturers have increasingly diverted production towards supplying AI data centres, tightening availability for smartphone, laptop and tablet makers. This has also translated into record profitability for memory companies. Industry data shows memory chip leader Micron reported gross margins of 86 per cent , a dramatic rise from 15 per cent a year earlier.

Prabhu Ram , Vice President of the Industry Research Group at CyberMedia Research , said Apple's decision to pass on higher component costs is a strong indication that even companies with highly efficient supply chains are finding it difficult to absorb the sustained increase in semiconductor prices.

Shah observed that Apple delayed price revisions for nearly two quarters to shield customers from inflationary pressures. However, he believes the AI driven semiconductor demand has now reached levels that make further cost absorption impractical, with supply constraints likely to continue for at least the next two years.

The timing could also influence consumer buying behaviour. Apple is preparing to roll out its upgraded Apple Intelligence features later this year, which require devices with higher memory and computing capabilities. While higher prices may soften demand in the short term, analysts believe many buyers who cannot postpone their purchases may instead opt for premium configurations to maximise long term value.

As AI continues to reshape the technology landscape, consumers may have to prepare for a future where premium devices remain significantly more expensive than before.