SAN FRANCISCO, California: Apple has raised prices for several iPad and MacBook models, citing a sharp rise in memory and storage chip costs as artificial intelligence companies consume more of the global supply for data centers.

The increases, announced on June 25, do not affect the iPhone, Apple's biggest source of revenue. But they raised the starting price of the MacBook Neo, its lowest-priced laptop, to US$699 from $599 only months after its launch.

The move highlights how even Apple, with some of the industry's strongest supplier relationships, is being affected by a memory shortage that has also clouded the outlook for global smartphone and PC sales.

"We have never seen a component price increase this much, this quickly," Apple said in a statement. "We have shielded our customers from these increases so far, but we have now reached a point where we need to begin raising prices on several products, including today's increases for iPad and Mac."

Apple raised the price of the MacBook Air with 512 gigabytes of storage to $1,299 from $1,099. The MacBook Pro with 1 terabyte of storage now costs $1,999, up from $1,699.

The iPad Air with 128 gigabytes of storage rose to $749 from $599. Apple also increased prices for both versions of its HomePod smart speaker and its Apple TV set-top box.

Apple shares fell nearly five percent, while Dell shares declined more than 8 percent.

Memory makers, including Micron, have prioritized orders from AI chip companies such as Nvidia, helping them earn record profits but reducing available supply for consumer electronics manufacturers.

"The memory environment is tough and remains structurally tough for the foreseeable future," said Ben Bajarin, CEO of technology consulting firm Creative Strategies.

Apple had warned in April that higher memory costs would begin affecting its profitability by the end of June, even though existing inventories had helped protect margins earlier in the year.

"We expect significantly higher memory costs," CEO Tim Cook said on a conference call with analysts in late April.

"Where we don't give color beyond June, I can tell you that beyond the June quarter, we believe memory costs will drive an increasing impact on our business," Cook had said.

Analysts said Apple's deep supplier ties may allow it to limit price increases more effectively than rivals. Still, they expect the company to raise iPhone prices in the coming months.

"The iPhone isn't spared, its hike is coming," said Nabila Popal, a senior research director at IDC. "It was incredibly strategic for Apple to make the price hike announcements before the iPhone fall launch, so the headlines at launch are not the price hikes but the value the new phones bring."

Prices for dynamic random access memory, used in most modern electronic devices, rose as much as 98 percent in the first quarter of 2026 and are expected to increase by another 58 percent to 63 percent in the current quarter, according to TrendForce.

IDC expects the smartphone market to post its biggest-ever annual decline of nearly 14 percent this year, while PC sales are projected to fall 11.3 percent.