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Apple and Xbox Raise Prices as AI Boom Drives Global Chip Shortage

Image Source: Zally, Pexels 

 

Apple and Microsoft-owned Xbox have both increased prices across key hardware products as a global shortage of memory and storage components continues to intensify, driven largely by surging demand from AI infrastructure. The simultaneous price hikes highlight how the rapid expansion of artificial intelligence is now reshaping costs across the wider consumer electronics industry.

According to reporting from the BBC, Apple has increased prices on select MacBooks and iPads, while Xbox has also confirmed hardware price hikes amid ongoing pressure from rising memory and storage chip costs. Apple said prices on some devices have risen by nearly 20%, attributing the changes to an “unprecedented” surge in demand for memory chips used in AI data centres. The company described the situation as an “extraordinary” spike in demand for storage and RAM components, noting that it has been unable to fully absorb the rising costs despite previous efforts to shield consumers. As a result, certain models, particularly higher-storage laptop configurations, have seen increases of several hundred dollars in global markets. 

Shortly after Apple’s announcement, Xbox confirmed a second price hike in under a year, with console prices rising by up to $150 depending on the model. Microsoft cited ongoing pressure from rising memory and storage costs, describing the situation as part of a wider “components crisis” affecting the entire gaming and hardware sector. The company also warned that storage prices have already more than doubled, with further increases expected in the coming years if supply constraints continue.

Industry analysts say the increases reflect a broader shift driven by the AI boom, which has significantly increased demand for high-performance chips used in data centres, reducing availability for consumer electronics. With supply struggling to keep pace, costs are being passed down across the tech industry, with further price increases expected from other hardware manufacturers as the imbalance between supply and demand continues.

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