Apple raises prices of iPads and MacBooks by almost 20% worldwide due to the cost of chips
Apple announced the increase in prices for its MacBooks and iPads globally, a move that reflects the escalating costs of memory and storage chips on the market.
The technology giant reported hikes of nearly 20% on some of its laptops and tablets, attributing the decision to an “unprecedented challenge” in the electronics industry. This scenario is driven by an “extraordinary rise” in demand for chips, essential to power artificial intelligence data centers.
“We have never seen a component cost so high in such a short time,” declared the company, guaranteeing that it is “working tirelessly to find solutions” to the issue.
Even with the exclusion of iPhones from the recent increases, technology analyst Paolo Pescatore noted that this move by Apple signals that “the advancement of AI is now impacting consumer electronics more broadly.”
Apple’s adjustments join a series of other companies that have also increased the prices of their products to compensate for growing hardware expenses.
Most of the appreciation in memory and storage components, especially RAM – a crucial type of computer memory – is directly associated with the expansion of data centers necessary for the development of artificial intelligence.
According to industry experts, this situation has generated a significant imbalance between supply and demand, resulting in higher costs for everyone involved.
Taiwan Semiconductor Manufacturing Company (TSMC), a world leader in chip manufacturing, also reported that inflation is increasing the costs of its operations.
In an interview with the BBC in early June, Wendell Huang, from TSMC – a company that produces chips for big names like Nvidia, AMD and Apple – did not rule out future price increases, given the persistence of high costs.
For Pescatore, Apple’s actions illustrate the magnitude of the challenges faced “even by the largest technology companies on the planet.”
“This is a landmark moment, as not even Apple, with its vast scale and purchasing power, is any longer immune to the increase in the price of essential components,” the analyst explained to the BBC.
Among the impacted products, a MacBook Pro with 1 terabyte of storage had its value increased from US$1,699 to US$1,999 in the American store.
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In the UK, a more affordable Apple laptop model had its price raised from £599 to £699 just a few months after its launch.
“So far, we have been able to protect our customers from these increases, but we have reached a point where we need to start readjusting the prices of several products, including today’s increases for iPad and Mac,” the company said in an official statement.
David Naranjo of market research firm Counterpoint predicts that other PC and tablet brands will follow Apple’s lead and raise their prices as well.
“They may choose to increase prices on specific products, reduce discounts on entry-level models or reorganize their product lines to focus more on premium devices,” Naranjo detailed.
Dipanjan Chatterjee, vice president and principal analyst at market research firm Forrester, expressed his belief that Apple’s loyal customer base will absorb the financial hit with few complaints.
“If there is a company capable of overcoming a price increase with minimal negative repercussions, it is Apple,” added Chatterjee.
Tim Cook, Apple’s current CEO, had already signaled these changes, declaring to the Wall Street Journal in early June that price adjustments were “inevitable” given the “unsustainable” situation involving memory chips.
“We undoubtedly need memory prices and supply to return to reasonable levels for consumer products. That is the fundamental issue,” he told the publication.
Soaring costs have affected a wide range of companies and products across the technology sector, ranging from PCs to video game consoles.
Last Monday, gaming giant Valve reported that its initial price target for the Steam Machine gaming PC was “no longer viable”, therefore launching the product for £879 in the UK and $1,049 in the US.
