economy
Apple and Microsoft are raising their prices by hundreds of dollars as chip costs soar
Updated on: June 25, 2026 / 3:48 PM EDT / CBS News
TL;DR
- Apple is increasing prices on select MacBooks and iPads by up to $300.
- Microsoft is raising Xbox console prices starting August 1, with increases of $100 and $150 depending on storage capacity.
- Both companies attribute the price hikes to the sharply increasing costs of memory and storage chips.
- The rapid expansion of AI data centers is intensifying demand for computing power and exacerbating a chip shortage.
- Microsoft expects console storage and memory prices to double again by fall 2027.
- Apple's MacBook Neo price increased from $599 to $699.
- Other Apple products affected include the MacBook Air 512GB and MacBook Pro 1TB, and iPad Air 128GB.
- iPhone price increases are anticipated but not yet announced.
- Apple shares fell after the company's price increase announcement.
- The chip shortage, initially caused by pandemic-related supply chain issues, is now being further strained by AI infrastructure development.
- Industry research suggests the chip shortage could persist well into 2027.