From Engadget · Steve Dent · · 3m
Why Apple's Mac Studio costs so much now
Memory and storage prices have skyrocketed, but Apple's profit margins may be climbing too.
In brief
Memory and storage prices have skyrocketed, but Apple's profit margins may be climbing too. The Mac Studio's price jumped $3,800 to $11,299 for the top model, driven by expensive memory components and Apple's hedging strategy against future price increases. Originally reported by Engadget.
Mac Studio is now essential for AI
The Mac Studio with M5 Max or M5 Ultra is the only Apple desktop that can run large language models locally or handle Hollywood-grade VFX work.
Prices have jumped dramatically
The M5 Max base price rose $500 to $2,500 in 18 months. The M5 Ultra jumped $1,500 to $5,500. The fully loaded M5 Ultra now costs $11,299, up $3,800 from the M3 Ultra.
Mac Mini can't match Mac Studio

The Mac Mini tops out at M5 Pro with 64GB RAM and 307 GB/s bandwidth. AI and content creation pros need the Mac Studio's 128GB to 512GB unified memory and 1.2TB/s bandwidth.
M5 Max handles serious creative work
Starting at $2,500, the M5 Max can run large language models and edit 8K video. The top M5 Max configuration reaches $5,899 with 128GB RAM and 2TB storage.
M5 Ultra targets AI power users
The M5 Ultra is two M5 Max chips joined together, supporting up to 512GB RAM. It can run huge language models with hundreds of billions of parameters entirely on device.
“store huge datasets entirely in local memory, increase the tokens-per-second speed and run huge LLMs with hundreds of billions of parameters entirely on device”
Video pros get extreme performance

The M5 Ultra can color-grade uncompressed 8K footage in real time, render complex VFX simulations, and play up to 33 streams of 8K ProRes 422 at 30 frames per second simultaneously.
Memory is the biggest cost driver
The Mac Studio uses LPDDR5X memory installed directly on the processor for maximum speed. Apple pays around $10 to $11 per gigabyte now, making the 256GB model's memory cost roughly $2,500 to $2,800.
Storage prices have quadrupled
Apple's 2TB PCIe 5.0 storage costs roughly $300 to $500 now, quadruple what it cost when the previous Mac Studio launched and double the price from two years ago.
Component costs explain only half

Memory and storage increases account for roughly $2,400 to $2,600 of the $3,800 price jump. The remaining $1,200 to $1,400 suggests Apple is raising profit margins or hedging against future price increases.
Apple may be hedging future costs
Apple typically targets 40 percent gross margins on computer hardware, but the new pricing is nearly 60 percent higher than estimated cost increases. This could mean Apple is locking in higher prices now to protect against even steeper RAM shortages ahead.
Prices likely won't drop soon
Apple rarely lowers prices except at end-of-life. The M3 Ultra actually went up over time due to rising memory costs. Apple has agreed to pay 30-40 percent higher RAM prices next year, so relief is unlikely through 2028.
Buy now if you need one

If you need a Mac Studio and can afford it, buying now is smarter than waiting. Prices are unlikely to drop and may rise further if memory shortages persist through 2028.
The essence
The Mac Studio's price jumped $3,800 to $11,299 for the top model, driven by expensive memory components and Apple's hedging strategy against future price increases.

