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Apple announced Thursday that it has raised prices for some popular devices, citing demand for key memory chips also used to power AI.
This week’s announcement of price increases comes amid a broader supply chain squeeze of memory chips and other components used in electronics as demand grows for AI data centres.
This means global supplies of the chips, a key component in technology like laptops and similar devices, have been facing pressure.
“The consumer electronics industry is facing an unprecedented challenge. The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage,” said Apple in a statement.
“We have never seen a component price increase this much, this quickly.”
The statement continued: “We have shielded our customers from these increases so far, but we have now reached a point where we need to begin raising prices on a number of products, including increases for iPad and Mac.”
Although Apple says the move does not affect the iPhone, the price increases affect some of its iPads and MacBooks, including the popular Neo laptop, its lowest-priced option.
Apple CEO Tim Cook had warned analysts in an April conference call that the shortage of chips meant Apple was facing “significantly higher memory costs,” and later added: “We believe memory costs will drive an increasing impact on our business.”
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Those impacts appear to now be hitting consumers as low supply and high demand, including for memory chips, usually translates to higher prices for businesses that can get passed onto sticker prices in stores.
“We know this is not welcome news, and we are working tirelessly to find solutions,” said Apple in the statement.
The Neo’s popularity was highlighted by Cook in the spring, about a month after launching in the midst of a tumultuous economy that has many consumers across North America feeling the strain of rising prices and the energy shock from the Iran war.
“Customer response to MacBook Neo has just been off the charts, with higher than expected demand,” he said, adding: “We under-called the level of enthusiasm.”
When Apple launched the MacBook Neo in Canada in March 2026, it had a starting price of $799, and $679 for students.
The price now is $949, according to the Canadian Apple Store, and $819 for students.
The federal minimum wage in Canada is currently $18.15 per hour and applies to workers in federally regulated private-sector industries.
These wages can vary based on the province or territory, as well as the sector.
At $819, a student may have to work a minimum of 45 hours to afford a MacBook Neo before taxes and other fees. That could mean having to work full-time for at least a week, based on an eight-hour workday and for five days per week.
In reality, many Canadians earning the federal minimum wage will take even longer to pay for a Neo, considering other necessities that eat into budgets. This includes food, shelter costs, transportation and non-discretionary spending.
For non-students, it may be even harder to afford.
At $949 before taxes and fees, the federal minimum wage means having to work at least 52 hours, or more than one week of full-time employment based on the same criteria.
These timelines could stretch even more if consumers look to more premium devices beyond the entry-level Neo.
For those looking to get an iPhone, some analysts believe the newest models could also see price increases as a result in the coming months.
“The iPhone isn’t spared, its hike is coming,” said Nabila Popal, a senior research director at IDC, in an interview with Reuters.
“It was incredibly strategic for Apple to make the price hike announcements prior to the iPhone fall launch, so the headlines at launch is not the price hikes but the value the new phones bring.”
– with files from Reuters
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