Why did Apple stock drop sharply after raising prices across key devices?

After Apple Inc announced price hikes on MacBook, iPad, home devices and the Vision Pro to offset cost hikes caused by an unprecedented shortage of memory chips and storage, its shares sank around 5% on Thursday (June 25), its worst fall since February 2026.The price hikes, which went live on its online retail store on Thursday, are in effect global. The company did not raise iPhone, Apple Watch or AirPods prices on Thursday, but hinted there may be more price adjustments to additional products in the future. Shares of Apple fell as much as 5.3% to $277.67, their biggest intraday drop in more than four months.

The company is increasing the prices of all Mac and iPad models. The starting price of the MacBook Neo, its latest laptop, is rising to $699 from $599, while the MacBook Air is increasing to $1,299 from $1,099.
ALSO READ | Apple aims for better and more entertainment offerings, executive Cue saysThe entry-level 14-inch MacBook Pro is moving to $1,999 from $1,699, while the 16-inch model is now priced from $2,999, up from $2,499. The iMac desktop now starts at $1,499, up from $1,299, while the Mac Studio increases to $2,499 from $1,999.

An Apple spokesperson said that “the rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage” and that the company has “never seen a component price increase this much, this quickly.”

Apple added that it has “shielded our customers from these increases so far, but we have now reached a point where we need to begin raising prices on a number of products, including today’s increases for iPad and Mac.”The higher-end MacBook Neo with more storage and Touch ID is now $799, up from $699. A fully loaded 16-inch MacBook Pro with the highest amount of memory and storage is now priced at $9,999. A 15-inch MacBook Air is now $1,499, up from $1,299.

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The higher-end, M4 Pro configuration of the Mac mini saw its price rise to $1,599, up from $1,399. The base model price was recently increased from $599 to $799, with an entry-level configuration being eliminated.

The 11-inch iPad Pro is increasing to $1,199 from $999, while the 13-inch model goes to $1,499 from $1,299. The 11-inch iPad Air is now priced at $749, up from $599, while the 13-inch model is now $949, up from $799. The base iPad is now $449, up from $349, while the iPad mini is now $599, up from $499.

The price of the standard HomePod speaker is now $349, up from $299, while the HomePod mini increased from $99 to $129. The Apple TV set-top box increased from $129 to $199. The Apple Vision Pro headset now starts at $3,699, up from $3,499. A 1-terabyte version of the device now costs $4,199.

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