MacBook Air M5 Price Hiked as Apple Raises Prices Amid Memory Chip Shortage

Apple has announced a significant price increase across several of its hardware products, including MacBook Air M5, iPads, Apple TV and HomePod devices, citing a sharp rise in memory and storage component costs driven by the rapid expansion of artificial intelligence (AI) infrastructure. The revised pricing has taken effect in multiple markets, including India, marking one of the company's largest hardware price hikes in recent years.

AI Boom Pushes Up Hardware Costs

According to Apple, soaring demand for memory chips and storage components from companies building AI data centres has strained global supply chains, leading to a steep increase in manufacturing costs. Why Apple's MacBook and iPad Prices Have Increased by Up to 42% Worldwide.

The company said it had absorbed the additional expenses for as long as possible but could no longer avoid passing some of the higher costs on to consumers. Industry analysts note that the AI boom has intensified competition for key semiconductor components, affecting not only Apple but the broader consumer electronics industry.

MacBook Pro, MacBook M5 Pro and iPads Among Devices Affected

The price revision applies to a wide range of Apple products. In India, several MacBook and iPad models have seen notable increases, with some premium configurations becoming costlier by as much as ₹1 lakh. The 14-inch MacBook Pro with the M5 Pro chip now starts at ₹2,99,900, up from ₹2,49,900, while the 13-inch iPad Air has also registered a substantial price increase. Apple Refurbished Mac and iPad Prices Rise After New Product Price Increase.

Apple TV and HomePod models have also become more expensive in several markets. However, Apple has not announced any price changes for its iPhone lineup so far.

Industry-Wide Impact Expected

Market analysts believe Apple's decision could signal broader pricing changes across the technology industry. As AI companies continue investing heavily in data centres, manufacturers are competing for the same memory and storage components used in consumer devices. Experts say companies without Apple's purchasing power and supply chain scale may face even greater challenges in absorbing rising costs, potentially leading to similar price increases across laptops, tablets and other electronics.

Consumers May Face More Price Increases

Although iPhone prices remain unchanged for now, analysts believe future Apple products could also become more expensive if component shortages persist. Apple has indicated that increasing memory requirements for AI-powered features are adding further pressure to production costs. The company has not announced any immediate plans for additional price revisions but acknowledged that the semiconductor market remains volatile.

The latest price hike comes as the global technology industry rapidly expands its AI capabilities. The growing demand for high-performance chips used in AI servers has driven up the cost of memory and storage components worldwide, creating supply constraints that are increasingly affecting consumer electronics.

Apple's move is among the clearest examples of how the AI-driven semiconductor boom is beginning to influence retail prices for everyday technology products, with analysts expecting the effects to extend beyond a single manufacturer.

(The above story first appeared on LatestLY on Jun 26, 2026 03:14 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).