Brief Overview
- Apple and Microsoft announced that they will increase the prices of several devices.
- The price rise is due to a shortage of DRAM, resulting in a shortage of manufacturing.
- Several other companies have followed this and are reportedly increasing the prices of their devices.
The AI boom is starting to hit consumers’ wallets, making laptops and gaming consoles more expensive.
Apple announced on Thursday that it will increase prices for select MacBooks and iPads. Just hours later, Microsoft announced that it will also increase Xbox console prices starting August 1, 2026.
Both tech giants have pointed to rising memory and storage costs as a major reason.
Let us know in depth about the reason for these rising costs.
What Exactly Got More Expensive?
Apple raised prices across its MacBook Air, MacBook Pro, and iPad lineup. MacBook Neo, the company’s most affordable laptop, launched just months ago at $599 and now starts at $699. The 15-inch MacBook Air jumped from $1,299 to $1,499.
Moreover, the 11-inch iPad Air now starts at $749, up from $599, while the 11-inch iPad Pro climbed to $1,199.
Apple also raised prices on HomePods, Apple TV streaming boxes, and its Vision Pro headset. iPhones, for now, remain unaffected.
On the gaming side, Microsoft said higher storage and memory costs have pushed up manufacturing expenses. The company is increasing Xbox Series X and Series S prices by $100-$150 and discontinuing the 2TB Xbox Series X model.
Why Is This Happening?
Artificial Intelligence is the main reason for this, which is consuming an enormous share of chip supply and leaving the OEMs empty-handed.
Prices of DRAM, a type of memory used in all modern tech gadgets, rose by as much as 98% in the first quarter of 2026. The experts have pointed out that the prices could increase more in the upcoming years.
Large AI data centres require vast quantities of high-performance memory. As a result, chipmakers are prioritising supplies for AI infrastructure over some consumer electronics products.
Micron Technology, a major supplier to Apple, Microsoft, and most of the consumer electronics industry, recently reported record quarterly revenue of $41.46 billion.
Its entire 2026 high-bandwidth memory supply is already fully contracted to AI chip customers. This leaves no spare capacity for laptop or console makers, which in turn gives makers deep trouble.
A Wider Crisis
Apple and Microsoft are not the only ones to blame for the rise in prices. Valve also followed them and raised the prices on its Steam Deck products by more than 60%.
Furthermore, Sony recently hiked the PS5 prices by $100. There are also rumours that Nintendo Switch 2 will also be seen with a hiked price tag in the upcoming days.
The main reason these companies are forced to increase prices is the same. All are suffering from the DRAM shortage crisis, which is expected to continue till 2027.
Does This Shortage Affect Indian Pricing?
For everyday consumers, the AI boom is no longer just a story about tech companies getting richer. It is now showing up directly in the price of the devices we use every day, and relief may still be years away.
This can also be seen in the Indian market, as the prices that are booming are no longer limited to the US markets.
If this scenario continues, the devices will keep getting more expensive, and we can expect very few new devices in the upcoming years.
FAQs
Why are MacBook and Xbox prices going up in 2026?
The prices are going up due to a global shortage of DRAM.
When does the Xbox price increase take effect?
The Microsoft Xbox price rise will be effective from August 1, 2026.
