Apple raised prices on its MacBooks and iPads on Thursday, and investors reacted negatively. The stock fell 5.2% to $277.89, its biggest one-day drop since April 4, 2025, and the worst showing in the Dow Jones Industrial Average that day. Price hikes ranged from $100 to $300 across different models. This rare mid-cycle increase shows how much rising memory chip costs are affecting the tech hardware industry. Here’s what changed and what it could mean for Apple’s growth story.
The MacBook Air now starts at $1,299, which is $200 more than before. The MacBook Pro is up to $1,999, a $300 jump. The MacBook Neo, launched this year as Apple’s most affordable laptop, went up by $100 to $699. The iPad Pro and iPad Air also increased by $200 and $150, now costing $1,199 and $749. Apple kept iPhone prices the same for now. According to Evercore ISI, this move likely aims to keep iPhone demand steady, but the next iPhone, expected in September, will probably be more expensive.
An analyst with an Outperform rating and a $365 price target said these mid-cycle price hikes are rare for Apple and could hurt demand for Macs and iPads. Apple had held off on raising prices by working closely with suppliers to manage costs. This approach had been successful. In the second quarter, iPhone and Mac sales beat analyst expectations, and demand in China grew after other companies raised their prices earlier this year.
Rising memory costs forced Apple’s hand. Last week, CEO Tim Cook said price increases were now unavoidable. Memory chip prices have jumped because demand for AI infrastructure has caused a supply shortage, and Apple can’t keep absorbing these costs. On Thursday, Micron Technology’s stock rose 10% after strong earnings, showing just how much power memory chip makers have right now.
Apple’s stock has dropped 10% in June and is heading for its worst month since December 2022. So far this year, the stock is up only 2%, while the S&P 500 has climbed 7.6%. The mood started to turn after the WWDC event earlier this month, when the new AI Siri updates disappointed investors. The price hike announcement on Thursday made things worse.
