Artificial Intelligence

Apple, Microsoft Hike Prices as AI Drives Memory Chip Shortage

Is the AI memory crunch a temporary boom-bust cycle or a permanent market crisis that demands urgent structural reform?

Published JUN 26

Apple, Microsoft Hike Prices as AI Drives Memory Chip Shortage

Story

Above: People shop in an Apple store in New York City on June 25. Image credit: Spencer Platt/Getty Images

The Facts

Apple raised prices on its entire Mac and iPad product lines on Thursday, with increases ranging from roughly 17% to 25% on base models. The MacBook Air jumped from $1,099 to $1,299, while the MacBook Pro rose from $1,699 to $1,999.
GB News
NBC
Apple attributed the hikes to surging memory chip costs driven by AI data center expansion, saying it had "never seen a component price increase this much, this quickly." The company said it had shielded customers from rising costs until that point.
Guardian
BBC News
Apple shares fell more than 6% following the announcement, wiping out roughly $265 billion in market value. The iPhone, Apple Watch and AirPods were not subject to the price increases.
Al Jazeera
NBC
This coincided with Microsoft announcing its third Xbox price increase since late 2025, raising prices by $100 on 512GB models and $150 on 1TB models, effective Aug. 1. The company also discontinued its 2TB Xbox Series X model entirely.
CBS News
Forbes
Memory chip prices for DRAM rose as much as 98% in the first quarter of 2026, according to industry tracker TrendForce, with a further increase of 58% to 63% projected for the following quarter. Major memory makers Samsung, SK Hynix and Micron have prioritized AI chipmaker orders over consumer device supply.
CBC
Guardian
Micron CEO Sanjay Mehrotra said the memory shortage is expected to persist beyond 2027 due to AI-driven demand and structural supply constraints. Research firm IDC estimated the smartphone market could see its largest-ever annual decline of nearly 14% this year, while the PC market is projected to fall 11.3%.
Financial Times
CBC

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

The AI memory crunch is a classic shortage cycle, not a permanent crisis — DRAM prices spiked nearly 187% year-over-year by late 2025, but history shows these booms burn fast and reverse hard. Memory makers like Samsung are cashing in now, but new capacity and cooling demand will flip this market.

Medium

Narrative B

The AI industry has effectively cornered the memory market, locking up supply through and forcing entire industries to pay more for less. This is concentration masquerading as progress, entrenching a handful of hyperscalers while everyone else gets priced out. A fundamental rethink of memory architecture is urgently needed.