Apple and Microsoft Raise Prices Amid AI Memory Crisis

On June 25, 2026, Apple Inc. implemented significant price increases across nearly its entire product line, including MacBooks, iPads, Apple TV, HomePod, and Vision Pro. Prices rose between 15% and 33%, with some high-end Mac Studio models jumping by $1,300. CEO Tim Cook characterized the surge in component costs as a "hundred-year flood," explaining that the company could no longer absorb the escalating costs of DRAM and NAND flash memory. This crisis, termed "RAMageddon," stems from AI data center expansions that have led chipmakers like Micron Technology, Samsung Electronics, and SK Hynix to prioritize high-margin enterprise orders over consumer electronics.

Microsoft Corporation followed with global price hikes for Xbox Series X and S consoles effective August 1, increasing prices by $100 to $150 and discontinuing the 2TB model. The company noted that console memory costs have increased more than 2.5 times since October. Other gaming hardware providers, including Sony and Nintendo, have also implemented increases, while Valve Corporation launched its Steam Machine at a higher-than-expected price point.

Apple's stock fell over 6% following the announcement, erasing hundreds of billions in market value. While iPhones and Apple Watches were excluded from this round, analysts project a possible $200 increase for the upcoming iPhone 18 Pro models. In response to the supply crunch, Apple is restructuring its processor roadmap, skipping high-end M6 chips to accelerate the AI-focused M7 generation slated for 2027. Senator Bernie Sanders condemned the hikes as "corporate greed," citing Apple's high annual profits.