Why Apple products are getting more expensive – and how you can save money

Reviewing your budget should be a key part of your financial strategy if you are planning to buy an Apple device. There are several ways to manage your budget wisely and reduce the impact of the higher prices.

The EMIs are going to increase with the new pricing now in effect. (Image credit: Anuj Bhatia/Indian Express)

Why Apple raised prices mid-year

There had been no major hints or indications that Apple would increase the prices of its products for months, although Apple CEO Tim Cook recently acknowledged that the company might have to do so. Many expected that any price increases would coincide with the launch of new products later this year.

Almost every product now costs more. The price of the recently introduced MacBook Neo increased from Rs 69,990 to Rs 79,990, and that of the 13-inch MacBook Air went from Rs 119,990 to Rs 149,900. The popular iPad Air’s price increased from Rs 59,900 to Rs 89,900. Even the HomePod mini, which has not been updated for years, now costs Rs 15,900.

Apple described the price increases as unavoidable, blaming a memory and storage chip shortage driven by soaring AI data centre demand, and said it had been absorbing the higher component costs for as long as it could.

In a way, this is a clear signal that AI is making everything more expensive. Even a cash-rich company like Apple, which earns enormous profits on every device it sells, is no longer willing to absorb the rising costs. Instead, it is passing them on to consumers. With the massive expansion of AI data centres putting unprecedented pressure on the supply of memory chips, the situation may be good news for chipmakers such as Micron, Samsung, and SK Hynix.

For Apple, however, securing enough memory and storage chips has become tough, especially as nearly every technology company is competing for the same components to power its products and AI infrastructure.

Apple raising prices even on its entry-level products, such as the MacBook Neo, is not simply a brand strategy, as many had initially assumed. The evidence suggests that the increase is being driven by real cost pressures in the component sector, and that these higher costs are being passed on to consumers.

For those who believe this move could be temporary, the price increases represent a permanent repositioning rather than a short-term adjustment. However, a bigger question remains: which Apple products will see the largest price increases and which ones will be spared?

For now, Apple may have held back on price increases for the iPhone, Apple Watch, and AirPods. However, industry watchers suggest that new products in all three categories could see higher prices as the company prepares to launch a major lineup later this year. This suggests that Apple is preparing consumers well in advance for future changes.

Higher prices for Apple products could become the norm going forward, as the memory chip crisis may continue to intensify for another two years or so.

It’s going to be tough for students who will have to shell out more for a Mac, even after applying the student discount. (Image credit: Anuj Bhatia/Indian Express)

Do your due diligence

A visit to Apple’s online store indicates that the new prices are already in force. However, there is still a short window before large-format retailers and e-commerce platforms such as Amazon and Flipkart begin increasing the prices of Apple products. So, consumers need to act fast.

Not every Apple product is an immediate purchase, nor is every product a must-buy. If you are in the market for a new Apple device, start with the product you were already planning to upgrade. For example, if you are looking for a MacBook Air, you can check for deals both online and offline before buying. The 13-inch MacBook Air M5 may still be available at lower prices from some retailers.

The same applies to the MacBook Neo, where discounts could help offset the recent price increases. This is also a period when college admissions are underway in India, and Mac purchases typically rise as students and families buy devices for academic needs.

I suggest not delaying the purchase of a Mac for too long. Laptop prices have gone through the roof over the past few months, and brands are not in the mood to cut prices or offer the kinds of deals they used to, mainly due to soaring DRAM and NAND costs.  Don’t wait for the festive season or Independence Day sales to get deep discounts on Windows laptops and Apple MacBooks. Those deals are unlikely to happen this year. Instead, I would suggest you consider buying a MacBook now if you can find one at a good discount.

The iPhone didn’t get more expensive. It’s no surprise, given that the iPhone uses the same memory and storage components as the Mac. Apple made a deliberate decision about which products would absorb the cost increases and which ones would not. (Image credit: Anuj Bhatia/Indian Express)

A little bit of research can also go a long way. Take the time to compare models to find the best value, and choose the one that checks all your boxes while offering the lowest price.

For iPad purchases, however, consider a new iPad very carefully. The MacBook Neo, for example, has made the iPad Air less appealing. The Neo is just as portable as the iPad but offers a true desktop experience with more powerful apps. Plus, you get access to a proper file system. It’s a fantastic Mac and offers more value than the iPad right now.

For those considering a new iPhone, avoid making a panic purchase. Apple has not increased the iPhone’s price for now, but once the iPhone 18 lineup is announced, the new models could arrive with higher prices. That could also lead to adjustments in the pricing of the current-generation iPhones.

Don’t wait for the September keynote, assuming you will get the same device at a lower price afterwards. If your iPhone is on its last legs and you have already decided to buy the iPhone 18- assuming you are mentally prepared to pay more for it- then it makes sense to wait. Otherwise, if you are happy with the iPhone 17 series, buy it now and avoid paying a premium later. The iPhone 17 Pro/Max already supports the new Siri features that require more memory, so it should remain capable of handling those updates.