Apple has said chip shortages mean it needs to increase the prices of MacBooks and iPads by around 20%, with Microsoft-owned Xbox also recently announcing prices of its console would increase.

The move includes Apple’s affordable entry-level Neo laptop, which will rise from $599 to $699, just a few months after launch.

Apple said: “The rapid expansion of AI data centres has created an extraordinary surge in demand for memory and storage. We have never seen a component price increase this much, this quickly.”

In addition to the Neo increase, price rises for other iPad and Macbook products will range between $150 and $300. iPhone prices were not affected by the announcement.

The currency conversions refer to US prices and do not reflect the current UK price of Apple products.

Xbox said that it would be raising prices worldwide as of August 1. Prices will increase by $100 for 512GB models and $150 for 1TB models. The company also said it would be “sunsetting” its 2TB model.

“Last October, we increased Xbox console price by $20 to $70 in the US. We hoped another price increase would not be necessary, and we have spent the last several months working with suppliers on options. Unfortunately, console storage and memory prices have increased by more than 2.5 times and we expect another doubling by the fall of 2027,” the company said in a statement.

“The entire consumer electronics industry is struggling with the current components crisis, but the effects are particularly hard on consoles. Unlike phones, computers, speakers and other consumer devices, consoles are typically not sold at a profit, but instead for less than they cost to make.”

The chip shortage, which began in 2020, has proved a massive challenge for both manufacturers and consumer electronics retailers. Sony took three years to resolve the supply problems, which caused months-long waits for its flagship PS5 console.

Earlier this year, analyst firm Trendforce said that price of a mainstream notebook could increase by as much as 40% in 2026.

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