Apple Raises MacBook Air by $200, Pro by $300 and iPad Pro by $200
AAPL•Apple increased MacBook and iPad prices by $100–$500, lifting MacBook Air by $200 to $1,299, MacBook Pro by $300 to $1,999 and iPad Pro by $200 to $1,199 due to surging memory costs. Shares declined about 6.5% after the change, though Gene Munster cites inelastic demand and a 1.5 billion-user ecosystem.
1. Device Price Hikes
On June 25, Apple raised prices across its MacBook and iPad lines in response to higher memory and storage costs. The MacBook Air base model increased by $200 to $1,299, MacBook Pro by $300 to $1,999 and MacBook Neo by $100 to $699. iPad Air rose $150 to $749, iPad Pro $200 to $1,199 and iPad Mini $100 to $599. Desktop Macs saw the iMac floor lifted $200 to $1,499, baseline Mac Studio with M4 Max up $500 to $2,499, and high-end Mac Studio with M3 Ultra up $1,300 to $5,299.
2. Stock Slide and Analyst Response
Following the price announcement, Apple shares slid nearly 6.5% intraday. Gene Munster of Deepwater Asset Management argued the sell-off overstates demand risks, citing Apple’s inelastic pricing power and its 1.5 billion-user ecosystem. He noted the average Mac’s 4.5-year replacement cycle absorbs price increases without significant demand loss.
3. Memory Market Strain
Apple’s price moves reflect a broader memory shortage driven by AI data center demand. Three companies—Samsung, Micron and SK Hynix—supply over 90% of global DRAM, and AI workloads are consuming record volumes. This supply concentration has forced consumer electronics makers to pass costs onto end users.
4. Cost Outlook and Consumer Impact
CEO Tim Cook warned that elevated memory costs will persist beyond the June quarter, making price protection unsustainable. While higher upfront prices may strain some buyers, strong ecosystem lock-in and long upgrade cycles suggest only modest demand erosion over time.
