Apple raised prices on its iPads and MacBooks, blaming skyrocketing memory chip costs driven by the AI boom. The move triggered the company's worst trading day in over a year, with shares falling sharply.

The price increases affect a broad range of models. The company attributed the hikes to what one outlet described as "RAMageddon" — a severe shortage of DRAM and NAND chips as demand from AI data centers and high-end smartphones outstrips supply.

Memory costs have soared as AI applications require vast amounts of high-bandwidth memory. The surge has squeezed manufacturers across the tech sector. Apple, which typically shields consumers from component volatility, passed the costs through in a rare move.

The higher prices could cool demand for MacBooks and iPads just as the PC market shows signs of recovery. Analysts warn the move may erode Apple's market share in education and emerging markets, where price sensitivity is high.

Some industry watchers argue the price hike is as much about margin protection as component costs. Apple has not disclosed the exact size of the increases across all models.