Apple on Thursday announced an increase in prices for Macs and iPads, citing a memory chip shortage brought on by the artificial intelligence boom
ByBARBARA ORTUTAY AP technology writer
Apple on Thursday announced an increase in prices for Macs and iPads, citing a memory chip shortage brought on by the artificial intelligence boom.
The Cupertino, California-based company called the demand spike an “unprecedented challenge” for the consumer electronics industry.
“The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage. We have never seen a component price increase this much, this quickly,” the company said in a written statement.
The new, entry-level MacBook Neo will now cost $699, up from $599. The 512 gigabyte MacBook Air now costs $1,299, up from $1,099. The one terabyte MacBook Pro is $1,999, up from $1,699.
The 128 gigabyte iPad Air is now $749, up from $599, while the 256 gigabyte iPad Pro Wifi is now $1,199, up from $999.
Analysts expect iPhone prices to rise later this year.
IDC analyst Nabila Popal said the latest price hikes were higher than she had expected, which suggests the iPhone price hikes may also be higher than expected, perhaps as much as $200 for the iPhone Pro and Pro Max models.
“I think the days of $50 price increases are over," she said.
Apple said that while it has shielded customers from the component price surges so far, "we have now reached a point where we need to begin raising prices on a number of products, including today’s increases for iPad and Mac. We know this is not welcome news, and we are working tirelessly to find solutions.”
Shares of Apple fell $13.29, or 4.5%, to $279.88 on Thursday afternoon.
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