Apple Hardware Price Hikes
Osmond Chia (Hacker News, 9To5Mac, Engadget):
Apple plans to raise the prices of its products as the cost of the memory chips it uses has surged, the technology giant’s boss has said.
Tim Cook, Apple’s outgoing chief executive, told the Wall Street Journal (WSJ) that price increases were “unavoidable” as the situation around memory chips had become “unsustainable”.
During its holiday quarter, Apple’s profit margin on hardware was 40.7%; in its most recent quarter, that dropped to 38.7% — a remarkable figure for physical products. It is these high margins that led to analysts like Ming-Chi Kuo to claim Apple would keep prices more-or-less stable and offset the additional costs through its even higher-margin — 76.7% — services business.
Winkler suggests in his summary that Apple has absorbed the cost increases so far because it has always treated memory and storage upgrades as profit centers. That’s no surprise to the Apple community, which has long chafed at Apple’s premium prices for memory and storage. But now, for instance, the price of standalone internal flash storage is closer to and sometimes even higher than Apple’s upgrade prices.
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Obviously, Apple could absorb such costs and more if it were to accept dramatically lower gross margins. But as high-minded and customer-focused as Apple is, the company is still in business to maximize profit.
I was recently looking to add another SSD and a few hard drives to my setup. Normally, prices go down over time, but currently it SSDs are about double the price I paid last year, and large hard drives are almost triple.
Apple, to my recollection, has never before issued a warning about price increases. Keep in mind that Apple deals with prices in a very different way from its competitors. For Apple, prices are part of a product’s brand, so they don’t fluctuate with component costs.
Chance Miller (Hacker News, MacRumors, Mac Power Users):
Apple has raised prices across the board for many of its products today. MacBook Neo now starts at $699 (up from $599), while MacBook Air now starts at $1299 (up from $1099). Other impacted products include MacBook Pro, iPad, iPad Air, and many more. iPhone, Apple Watch, and AirPods pricing is unchanged.
Earlier this week, I outlined three reasons for agreeing with Mark Gurman that the Apple price increases could be imminent, and that indeed proved to be the case.
iPhones have escaped the increases, but they are otherwise both broad-reaching and pretty dramatic. But perhaps the most surprising thing is that the MacBook Neo has been included …
Apple today increased the starting price of the Mac mini with M4 Pro chip by $200, taking the higher-tier model up to $1,599 on its online store.
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Apple had already raised the Mac mini’s effective starting price in May by discontinuing the $599 configuration with 16GB of RAM and a 256GB SSD, leaving the $799 model with a 512GB SSD as the new entry-level option. Interestingly, the 16GB RAM / 256GB storage option has now been reinstated, but the $799 starting price remains.
Stephen Hackett has a table of the old and new prices.
Pre-announce it with a small delay, thus giving you a temporary sales boost as people scramble to get their orders in at current prices, and to soften the blow when the increases hit.
I also can’t help but see that “we need to begin raising prices on a number of products, including today’s increases for iPad and Mac,” statement as implying more increases are coming. The iPhone price increase seems inevitable, and my money is on it starting with the new models in September.
Micron CEO, president and chairman Sanjay Mehrotra explained the SCAs in prepared remarks delivered during the company’s Q3 earnings call. He explained that Micron has signed 16 SCAs, most of them covering 2026 to 2030, and that they involve a commitment to buy a certain quantity of product and pay for it in a pricing band that has a floor and a ceiling price. The floor price covers the historically high gross margins mentioned above, and the ceiling price means those who commit to an SCA are insulated if memory prices go even higher.
Previously:
- SpaceX Acquires xAI, Goes Public, Acquires Cursor
- MacBook Neo Sales
- Hetzner Price Hikes
- 1Password’s Price Hike
- Pair Networks Price Increase
- Apple Services Price Hikes
- Price Increases for Developer Tools
Update (2026-06-26): Hartley Charlton:
Micron’s chief business officer has hinted, without calling it out by name, that Apple’s tough supplier negotiations contributed to the conditions behind the global memory shortage.
For years, Apple has been able to dominate and dictate to their suppliers thanks to their scale. But the Asian operations which Tim Cook so famously set up, have been upended, like most everything else, by AI. From TSMC on down, Apple is no longer the customer dictating terms for the entire industry, it’s now the company which has taken over the mantle as the most valuable one in the world: NVIDIA.
Apple’s stock price dropped 6% on the day — its largest single-day loss since April 2025.
Here’s a table with most of the base models whose prices increased[…]
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iPad prices mostly went up 20–25%, but the hardest hit was the no-adjective base model, which rose almost 30%, from $350 to $450. That’s a big increase for a product meant to appeal to buyers for whom price is obviously their biggest concern.
Anyone who purchased a MacBook Neo for $600 (or $500 with education discount) between March and this morning purchased the lowest-price MacBook Apple has ever sold — and perhaps the lowest-price MacBook they ever will sell.
Apple’s full statement:
The consumer electronics industry is facing an unprecedented challenge. The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage. We have never seen a component price increase this much, this quickly. We have shielded our customers from these increases so far, but 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.
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Apple indicating that it needs to “begin” raising prices suggests that additional price increases might occur later.
“and we are working tirelessly to find solutions.”
I find this to be the most confusing part. Do we believe this to be a genuine effort? Even if so, how would a “solution” actually work? Would they actually lower prices if a solution were to be found?
They also just said they “will continue working” on bringing Siri AI to the EU right before saying in a different venue that they’d stopped working on it.
In a statement about the price increases, Apple said, “We can no longer shield customers from our 39% gross margin.”
Like, truly laughable. $200 for a 64GB Apple TV 4K that is almost 4 years old?
But even setting aside the prices of competing devices, it just feels wrong to hike prices this much for four-year-old hardware running five-year-old pre-AI silicon. The higher-end model’s price went up 67 percent!
The only way this makes sense is if these prices are really meant for the upcoming new hardware, and those new models are more ambitious home hubs that warrant $200–250 prices.
Previously:
Update (2026-06-29): Zac Hall:
The Financial Times reports that Apple is seeking clearance from the Trump administration to purchase memory chips from a blacklisted Chinese company. The move would help it meet demand for product manufacturing during the ongoing global memory supply shortage.
Perhaps this is the “working tirelessly” that Apple was referring to.
Apple previously sought permission from the Biden administration to do the same thing back in 2022, and that did not go well – despite promising to use the chips only for iPhones sold in China …
Something happens — outside the company’s control — that causes those essential components to rise in price significantly.
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What you cannot do is hold a philosophically consistent logically coherent view where your answer to how a company should respond in such a scenario is contingent on what the “something happens” is that caused component prices to rise.
Maybe—but that’s only relevant if you accept the premise that it was out of Apple’s control. I don’t know the details of the deals, but there’s an argument that the rising costs to Apple are to some extent Apple’s “fault.” If Tim Cook gets credit for helping suppliers expand capacity and locking in contracts for memory at low prices over the past two decades, doesn’t the same logic apply in reverse? The AI-driven shortages were foreseeable—and publicly discussed years ago. If you believe Micron that Apple chose to prioritize its own past numbers rather than securing its future supply, doesn’t that make today’s situation different from, say, a tsunami that unexpectedly wiped out a bunch of factories? I don’t know exactly how the increased costs should be apportioned, but I think the reasons for the costs are relevant, and I don’t think they’re fully exogenous.
sid:
If Apple has the balls to raise the prices of their products, they should also have the balls to increase trade-in values for older devices.
Update (2026-06-30): Kif Leswing:
But while tech giants like Apple and Microsoft, which both announced price hikes this week, have a hefty cash cushion, supply chain leverage and customers numbering in the millions or billions, a much wider swath of businesses face potentially dire straits. Most consumer electronics companies have little margin to spare and can’t confidently raise prices in an economy already grappling with inflationary pressures.
GoPro, the struggling maker of action cameras, warned this month that it might go out of business after memory costs shot up between 80% and 115% at the end of the first quarter. And shares of speaker maker Sonos are down 23% this year as memory prices pressure margins.
Update (2026-07-06): Basic Apple Guy:
Below you’ll find a bunch of charts chronicling the current state of RAMmaggedon, the global memory-chip crisis we currently find ourselves in.
