Apple and Microsoft Raise Hardware Prices Amid AI Chip Cost Squeeze, Shares Fall Last Week

Last week, Apple and Microsoft announced price hikes across flagship hardware products, citing higher memory and storage costs driven by AI data center demand. Apple increased prices on select MacBook and iPad models, while Microsoft raised prices for Xbox consoles and Surface devices. The pricing moves weighed on investor sentiment, with Apple shares falling over 4% and Microsoft declining over 1% during the week, as traders worried about potential demand slowdown from consumers.

In contrast, semiconductor suppliers benefited from the AI boom. Micron Technology surged after reporting strong fiscal third-quarter 2026 results, with the company now forecasting chip shortages to extend beyond 2027 rather than ending in early 2027. CEO Sanjay Mehrotra said robust demand for memory chips from AI data centers would keep supply pressures elevated.