Microsoft and Apple lift prices on Xbox and Apple devices as AI-fueled chip shortages drive memory costs higher

Microsoft and Apple have moved to raise prices on multiple products, according to a report, as AI-driven demand for advanced chips keeps squeezing supply and pushing up component costs. The increases, the report says, are tied in particular to rising prices for memory chips that are used across computing systems and are in high demand as generative AI expands.

For Microsoft, the report ties the pricing change to its Xbox lineup. For Apple, it links the increase to Macs and iPads. The report frames this as a direct pass-through of higher hardware input costs, rather than a shift in product features, and suggests customers could see noticeable sticker-price changes depending on model and configuration.

The size of the increases is described as up to $300, or about €265, depending on the product, and as much as roughly 25%. The report characterizes the magnitude as meaningful enough to be felt by shoppers, indicating that the cost pressure is not limited to marginal components but is affecting overall device pricing decisions.

The backdrop is the global scramble for AI-capable semiconductors, where memory is a critical input because it helps supply the fast, high-capacity data paths that AI workloads require. As AI chip orders expanded, memory manufacturers and upstream suppliers faced balancing challenges, and the report argues that this is now showing up in consumer electronics pricing.

Apple’s device lineup and Microsoft’s console strategy both depend on steady flows of key components. When supply tightens, manufacturers often absorb some cost pressure first, then adjust pricing when higher costs persist. In this case, the report suggests the adjustment phase has arrived for both companies, and that the AI-related memory cost lift is strong enough to prompt retail price changes.

While the report attributes the changes to memory-chip shortages and higher costs, it does not provide full details on the specific suppliers, contract terms, or whether any of the affected products were reconfigured to use different memory parts. It also does not disclose how long the companies expect the higher-cost period to last, or whether future revisions could reduce the impact.

For consumers and the broader technology supply chain, the pricing changes are a announcement that AI demand is affecting not only data-center equipment but also mainstream hardware. If memory costs remain elevated, similar pricing pressure could extend to other devices that rely on comparable memory architectures, particularly laptops and tablets that target performance and AI features.

What to watch next is whether the companies publish additional pricing guidance, whether retailers show further adjustments beyond the initial changes, and whether there are signs of easing in semiconductor supply or memory pricing. Any update on component availability and lead times, especially for memory used in client devices, would help clarify whether these increases are a temporary response or a longer adjustment cycle.