Apple Inc.’s (NASDAQ:AAPL) decision to raise MacBook and iPad prices sparked criticism from Sen. Bernie Sanders (I-Vt.), while Wedbush analyst Dan Ives defended CEO Tim Cook’s decision as necessary to protect profit margins.
Apple Raises Prices Amid AI-Driven Component Cost Surge
Apple on Thursday increased prices across several MacBook and iPad models, citing soaring memory and storage costs fueled by the artificial intelligence infrastructure boom.
The company also warned that higher component costs had become unavoidable.
| Product | Old Price | New Price | Increase |
|---|---|---|---|
| MacBook Neo | $599 | $699 | $100 |
| MacBook Air (512GB) | $1,099 | $1,299 | $200 |
| MacBook Pro (1TB) | $1,699 | $1,999 | $300 |
| iPad Air (128GB) | $599 | $749 | $150 |
| iPad Pro Wi-Fi (256GB) | $999 | $1,199 | $200 |
Apple shares fell 6.15% on Thursday, marking their steepest one-day decline since April 2025. In the after-hours trading, the shares gained 0.40% and reached $276.25, according to Benzinga Pro.
Apple Price Hikes Draw Bernie Sanders’ Ire
Sen. Bernie Sanders (I-Vt.) criticized the move, arguing that a company generating billions in annual profit and spending heavily on stock buybacks should not pass higher costs on to consumers.
Elon Musk And Dan Ives Offer Their Takes
Reacting on X, Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk shared a Wall Street Journal report on how the AI spending boom is pushing up costs across the economy.
He quipped, “Biggest price jump in anything I’ve ever seen too,” referencing CEO Tim Cook’s remark that the increase in component costs was unlike anything he had witnessed “in any area in over 40 years.”
Wedbush analyst Dan Ives backed Apple’s decision, writing that the company “had to raise prices for this memory wave of cost increases” and adding that Apple “ripped the band-aid off” because it was “the right move for margins.”
Gene Munster Dismisses Apple Demand Concerns
Deepwater Asset Management’s managing partner Gene Munster argued the market reaction was excessive, saying Apple customers remain loyal despite higher prices.
“$AAPL trading down … feels like an overreaction on fears of demand destruction,” Munster wrote, adding that Apple’s ecosystem makes demand relatively inelastic.
According to Benzinga Edge Stock Rankings, Apple stock earns a Quality score in the 98th percentile, reflecting strong price performance across the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: lev radin on Shutterstock.com
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