Apple has raised prices for several MacBook and iPad models globally, including in the UAE, citing soaring chip and memory costs linked to artificial intelligence infrastructure demands.
In the UAE, the latest MacBook Air with the M5 chip now starts at Dh5,499, up from Dh4,599. The M5 MacBook Pro, which launched at Dh6,899, is now Dh8,499. The recently launched MacBook Neo has risen from Dh2,599 to Dh2,999. The M4 iPad Air has increased from Dh2,499 to Dh2,999, and the M5 iPad Pro has gone from Dh4,199 to Dh4,999.
Apple told The National on Thursday it had “reached a point where we need to begin raising prices on a number of products.” It added that the consumer electronics industry “is facing an unprecedented challenge”, pointing to the “spectacular rise of artificial intelligence, its infrastructure demands and the seemingly endless applications the technology is being used for.”
Apple chief executive Tim Cook, who is stepping down on September 1, hinted at the price changes earlier this month. He told the Wall Street Journal: “There's less supply at a time when consumers want devices and the memory guys are passing along huge price increases.” He added: “We definitely need memory pricing and supply to return to reasonable levels for consumer products. That's the bottom line.”
Apple shares fell as much as 5 per cent following the announcement. The company is expected to unveil new iPhones in September, with industry anticipation focusing on its first foldable flagship device.
Apple noted it had “reached a point where we need to begin raising prices on a number of products” after years of largely resisting such increases, despite adding new features. The company acknowledged that “this is not welcome news” and said it is “working tirelessly to find solutions.”
The rise of AI applications has created unprecedented demand for chips, causing shortages and raising their costs. The development and building of data centres, which house these AI-intensive operations, also adds to the pressure. Apple indicated it had not previously experienced component price increases of this scale or speed, a shift that marks a departure from its long-standing pricing discipline.
Tim Cook’s upcoming departure on September 1 adds a layer of transition to the company’s current strategy. His comments to the Wall Street Journal earlier this month were the first public signals that price adjustments were imminent, though he did not specify which products or when the changes would take effect. The 5 per cent share drop following Thursday’s announcement reflects investor sensitivity to both the pricing move and broader industry headwinds.
Frequently asked questions
What are the new prices for the MacBook Air with M5 chip in the UAE?
The MacBook Air with the M5 chip now starts at Dh5,499 in the UAE, up from Dh4,599.
How much did the price of the M5 iPad Pro increase in the UAE?
The M5 iPad Pro price rose to Dh4,999 in the UAE, an increase from Dh4,199.
Why is Apple raising prices on MacBook and iPad models globally?
Apple says soaring chip and memory costs driven by AI infrastructure demand are forcing the price hikes.
When did Tim Cook hint at the upcoming price changes?
Tim Cook warned of price adjustments in an interview with the Wall Street Journal earlier this month, before the official announcement on Thursday.
