AI Demand Squeezes Memory Supplies, Driving Apple and Microsoft Hardware Price Hikes
The generative AI boom has fueled data-center expansion, with companies buying large volumes of memory and storage chips, squeezing supplies for consumer electronics and pushing up costs. Even Apple, with its substantial supply-chain bargaining power, can no longer absorb the increases. The impact has spread from servers to personal computers, tablets and game consoles, showing that AI investment is translating into consumer hardware inflation.
On June 25, 2026, Apple raised prices on several Mac and iPad models by about 15% or more. The entry-level MacBook Neo increased from $599 to $699, while the 512GB MacBook Air rose from $1,099 to $1,299. Microsoft announced the same day that it would raise global prices for its 512GB and 1TB Xbox models by $100 and $150, respectively, starting August 1.
All Coverage
2 original reportsThe Backstory
The history behind this eventMicrosoft Raises Xbox Prices by Up to €200 in Europe, £170 in UK
Microsoft’s latest Xbox increase underscores how the AI infrastructure boom is spilling into consumer electronics. Surging data-center demand has tightened supplies of memory and storage components, raising the cost of RAM and SSD capacity used in consoles. Xbox said those component prices have climbed more than 2.5 times and could double again by fall 2027. The pressure is particularly acute for consoles, which are commonly sold at or below manufacturing cost to support software and subscription revenue.
Microsoft raised Xbox console prices across Europe and the UK from Aug. 1, 2026. In Europe, the 1TB Xbox Series S jumped to €599.99 from €399.99, a 50% increase, while the disc-equipped Xbox Series X rose to €799.99 from €599.99. UK increases reached £170: the 1TB disc Series X climbed to £669.99 from £499.99. The company also discontinued its 2TB model, extending a worldwide increase announced June 25 after earlier price hikes in May and October 2025.
Subscribe to Mark Radar Weekly
Every Friday, the week's strongest signals in your inbox. Unsubscribe anytime.
If you search news on Google, you can set Mark Radar as a preferred source—our coverage will show up more often in your results. Set as preferred source on Google →