Apple, Microsoft raise prices citing AI chip costs

What happened

Apple raised MacBook and iPad prices by up to $300 on June 25, citing soaring memory and storage chip costs driven by AI data center demand. Microsoft followed hours later with Xbox console price increases of $100 to $150 per model, effective August 1. SoftBank Group dropped more than 12%, while South Korea's KOSPI fell in early trading, and semiconductor and chip equipment makers across Asia declined 2–7%.

Why it matters

The back-to-back price hikes from two of the world's most valuable technology companies confirm that the AI chip shortage has moved beyond industry-level problems to hit consumer prices directly. For investors, this signals potential margin pressure on consumer electronics makers and risks disrupting the market recovery that AI stocks have driven.

What to watch

Analysts are monitoring whether hyperscalers (large cloud providers) continue to decline, as sustained repricing of the AI trade could make it very tough for the rest of the market to advance. SoftBank's aggressive AI infrastructure bets leave it particularly exposed to any sustained repricing.