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MacBook Air M5: Apple’s latest price revision in India has made buying a Macbook Air M5 and several other premium devices significantly more expensive, with industry experts pointing to the growing cost of artificial intelligence hardware as the biggest reason behind the increase. Along with the Macbook Air M5, prices have also gone up for iPads, Mac Studio, Mac mini, HomePod and Apple TV. While entry-level products have largely escaped the hike, professional MacBook models and premium iPads have seen the sharpest increases, with some high-end MacBook Pro configurations now costing nearly Rs 1 lakh more than before, according to multiple media reports. Now there are speculations if the cost of new iPhones such as iPhone 18, iPhone 18 Pro be more than what the previous generations were priced at.

The latest revision has surprised many buyers because it comes at a time when Apple is expanding its AI capabilities. Although the company has not officially explained the reason for the revised prices, experts believe AI-ready hardware is making devices like the Macbook Air M5 much more expensive to build.

Why Macbook Air M5 prices are rising as AI demands more powerful hardware

According to NDTV, Siddharth Maurya, Managing Director of Vibhavangal Anukulkara Pvt Ltd, said modern AI devices require more RAM, faster storage and advanced processors capable of running complex AI models directly on the device. “Artificial intelligence gadgets demand greater RAM memory, storage, and chips, which allows them to run complex algorithms directly on the device,” Maurya said.

According to NDTV, Maurya explained that demand for these high-end components has surged because smartphone makers, hyperscale data centres and AI companies are all competing for the same advanced hardware, pushing prices higher. He added that companies are also spending billions on AI research, custom silicon, software development and supply-chain diversification. “Alongside the cost of components, the buyers are also paying for future-proof technology allowing using of AI features via software updates,” he said. These factors are adding to the cost of devices such as the Macbook Air M5.

Beyond components, Macbook Air M5 pricing also reflects Apple’s AI strategy

According to NDTV, Rajveer Singh of Thinkarklub said Apple’s pricing is not driven only by manufacturing costs. “The price hike on Apple products isn’t just about specs. It’s about innovation and R&D,” Singh said.

He added that Apple is investing heavily in AI, custom silicon and on-device intelligence, all of which require larger memory capacities, new chip designs and years of engineering work. According to NDTV, Singh also said Apple’s strong brand value allows it to charge premium prices. “When demand is inelastic and brand equity is unmatched, Apple has pricing power. Customers aren’t just buying hardware, they’re buying into an ecosystem,” he said. “So yes, costs went up because of AI. But the premium also comes from positioning.”

Reports say that the AI boom has also created a global shortage of high-bandwidth memory and advanced storage chips, making premium electronics structurally more expensive. According to NDTV, Maurya believes this marks the beginning of a new premium technology cycle where AI capability will play a central role in pricing.

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