[News] Apple Price Hikes Erode Neo’s Cost Edge as Xbox Cites 2.5x Memory Surge for New Increase
As soaring memory prices fuel a rally in Micron, which recently reported gross margins approaching 85%, the ripple effects are increasingly visible in the consumer electronics sector. Reuters notes that Apple has raised prices across its iPad and MacBook lineup, including pushing its entry-level “Neo” laptop from $599 to $699 just months after launch, narrowing its price gap with competing Windows and Chromebook devices.
Meanwhile, BBC adds that following Apple’s roughly 20% price increase on select laptops and tablets, Microsoft’s Xbox has also followed with its second major console price hike in under a year, with new pricing set to take effect in August.
iPhone Hikes Expected Next
In detail, Apple raised prices across multiple product lines, with its MacBook Air (512GB) increasing to $1,299 from $1,099 and the MacBook Pro (1TB) rising to $1,999 from $1,699, according to updated listings cited by Reuters. The iPad Air (128GB) also climbed from $599 to $749, while prices for HomePod smart speakers and the Apple TV set-top box were likewise raised, the report adds.
Notably, the price increases have also reshaped Apple’s entry-level positioning. The MacBook Neo, in particular, has lost its $100 advantage over Dell’s $699 XPS 13—launched specifically to compete with it—and now also sits above select Chromebook models from Lenovo and Asus, Reuters suggests.
On the other hand, while the latest price adjustments do not extend to Apple’s flagship iPhone lineup—its key revenue engine—Reuters, citing analysts, notes that further iPhone price hikes are expected in the coming months.
Last week, CEO Tim Cook told The Wall Street Journal that Apple can no longer fully absorb the surge in component costs driven by the artificial intelligence boom.
Xbox Raises Prices as Memory Costs Surge 2.5x
Xbox, in a blog post, said storage and memory prices have surged 2.5x in recent months and are expected to double again by fall 2027, framing the spike as the primary driver behind its latest round of console price increases.
According to BBC, the Microsoft-owned company will raise the price of its entry-level console by $100 to $499, while a higher-storage variant will increase by $150 to $749. The latest move follows an earlier round of increases in October, when prices were lifted by $20 to $70, bringing cumulative hikes to roughly 30%–40% over the past year, BBC adds.
At the same time, Microsoft has not been alone in raising prices across the gaming sector. Forbes reports that Sony has increased the PlayStation 5 Digital Edition from $400 to $600 since launch, while the PS5 Pro now sits at $900, making it the most expensive non-PC console on the market.
Nintendo, by contrast, has remained relatively restrained, raising the Switch 2 price by $50 from $450 to $500, though this pricing stance may not hold if component costs continue to rise, Forbes notes.
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(Photo credit: Xbox)
