Rising memory costs push Apple to raise prices, other OEMs may follow: Analysts
New Delhi, June 25
Apple's decision to raise prices for select MacBook and iPad models marks a broader shift in the consumer electronics industry, with surging memory costs and AI-driven demand for semiconductors forcing manufacturers to reconsider pricing strategies, analysts said on Thursday.
The price hikes come after Apple indicated that it could no longer fully absorb rising component costs, particularly for memory and storage chips that have witnessed sharp increases amid strong demand from artificial intelligence data centres and cloud computing providers.
According to Prabhu Ram, Vice President at CyberMedia Research (CMR), the memory market is undergoing a structural transformation that extends beyond the traditional semiconductor cycle.
"The memory cost environment is undergoing a fundamental shift. What we are seeing is no longer just the familiar ebb and flow of the semiconductor cycle, but the emergence of a new demand paradigm driven by AI infrastructure investments," Ram said.
He noted that memory suppliers are increasingly aligning production capacities to cater to AI data centres, resulting in a more constrained and cost-intensive environment for consumer electronics manufacturers.
"Apple has traditionally been among the best-positioned companies to absorb supply chain shocks and manage component cost volatility. The fact that it is now passing some of these costs on to consumers is a significant signal for the broader industry," he added.
Analysts at Counterpoint Research said memory prices have increased more than fourfold since the fourth quarter of 2025, significantly eroding profit margins across the consumer electronics industry.
"Apple has done well to hold prices steady until now, though it hinted at increases last week," said Tarun Pathak, Research Director at Counterpoint Research.
According to the research firm, the latest price revisions for the MacBook Neo, MacBook Air, MacBook Pro, iPad Air and iPad Pro Wi-Fi models indicate a larger shift in industry pricing dynamics rather than isolated product-level adjustments.
Counterpoint expects other PC and tablet manufacturers to adopt similar measures, including selective price increases, reduced promotional discounts and a stronger focus on premium product categories.
The firm said that higher bill-of-material costs, driven largely by memory components, are likely to remain a long-term challenge for device makers as AI-related demand continues to dominate semiconductor investments.
— IANS
Reader Comments
Just when I was planning to buy a new MacBook for my design work. 😞 Why does everything have to become costlier? I understand the global supply chain issues, but Apple's margins are huge—can't they absorb a bit more? Indian customers always end up paying the premium.
It's a global trend. Memory prices have been skyrocketing—I work in IT procurement, and we're seeing quotes double in six months. Apple held out longer than most. Let's face it, if you want new tech, you'll have to pay more. The AI boom is real, and it's driving everything.
I wish Indian brands like Micromax or Lava would step up their game and offer affordable alternatives. But they don't have the R&D to compete. So we're stuck paying inflated prices for Apple or waiting for Xiaomi to increase prices too. No one is safe from this memory cost wave.
Analysts are just making excuses for price hikes. Apple has always been overpriced in India—₹1,20,000 for a laptop? Meanwhile, memory costs may have risen, but corporations are using this as an excuse to increase margins. Consumers need to be smart and wait for sales or buy refurbished.
As a student, this is frustrating. I need a reliable laptop for classes, and prices are just going up. I was eyeing a MacBook Air, but now with the hike, it's out of budget. I'll probably go for an older model or a Windows laptop. Apple is losing the Indian youth market with these moves.