Monday, June 29, 2026
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Microsoft and Apple Raise Product Prices as AI Drives Chip Costs Higher

Microsoft and Apple have announced price increases across several product lines as soaring memory and storage chip costs, fueled by the rapid expansion of artificial intelligence infrastructure, continue to reshape the consumer electronics market, according to EuroNews.

The latest increases affect Xbox consoles, Macs and iPads, with some products becoming up to $300 (€265) more expensive.

Xbox, Macs and iPads Become More Expensive

According to EuroNews, Microsoft will increase global Xbox console prices by $100 to $150 starting on 1 August.

In the United States, the Xbox Series S will rise to $500, while the Xbox Series X will cost up to $800. The company also confirmed it will discontinue the 2TB Xbox model.

Apple has also implemented price increases after CEO Tim Cook recently warned that higher component costs had made price adjustments unavoidable.

The entry-level MacBook Neo will cost $100 more, while the MacBook Air (512GB) and iPad Pro Wi-Fi (256GB) will each increase by $200. The 1TB MacBook Pro will become $300 more expensive, and the iPad Air (128GB) will rise by $150.

Industry analysts cited by EuroNews expect Apple’s iPhone lineup to become more expensive later this year, with premium models potentially increasing by up to $200.

AI Boom Continues to Disrupt Supply Chains

According to EuroNews and statements cited from AP, the rapid expansion of AI data centers has sharply increased demand for memory and storage chips, creating supply shortages across the semiconductor industry.

Apple described the situation as an “unprecedented challenge”, while Microsoft said memory and storage chip costs have already more than doubled and could double again before the end of 2027.

The market remains dominated by manufacturers including Samsung, SK Hynix and Micron Technology.

Industry-Wide Price Increases

The higher component costs are affecting the broader gaming and consumer electronics industry.

According to EuroNews, Sony recently raised PlayStation 5 prices in Europe, while Nintendo will increase the price of the Switch 2 beginning in September.

As AI infrastructure investment accelerates worldwide, analysts expect higher hardware prices to remain a defining trend across the technology sector over the coming years.

Photo: PANews

Teodora Helerman
Teodora Helerman
Online editor, content writer, blogger, and social media specialist, with experience in writing and publishing news, creating original content, and adapting materials for various digital platforms.
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