AI Generated Image
Apple raises iPad and MacBook prices as memory chip costs surge
Fox Business • • business
Key Points:
- Apple has raised prices on its iPad and MacBook devices due to rising costs of memory and chips driven by the rapid growth of the AI industry, while excluding the iPhone from these hikes.
- The company cited unprecedented and rapid increases in component prices, stating it can no longer absorb these costs without passing them on to consumers.
- Price increases include the MacBook Air rising from $1,099 to $1,299, the MacBook Pro from $1,699 to $1,999, and the iPad Air from $599 to $749, with the entry-level Apple Neo laptop increasing from $599 to $699.
- Apple CEO Tim Cook acknowledged that price hikes were unavoidable due to unsustainable memory cost increases and indicated that rising memory costs will continue to impact the business beyond the current quarter.
- The surge in prices is linked to memory chipmakers prioritizing AI chip orders, constraining supply for consumer electronics and potentially forcing rival device makers to raise prices even more sharply.
