Apple Raises Prices on Macs and iPads Amid the A.I. Boom

Key Points:

• Apple has raised prices on several Mac and iPad models by $100 to $200, citing soaring costs of memory and storage chips driven by increased demand from the artificial intelligence boom.
• The price of the base MacBook Pro increased from $1,699 to $1,999, the MacBook Neo rose to $699, the iPad Air to $749, and the iPad Pro to $1,199.
• The global shortage of memory and storage chips is partly due to AI chipmakers like Nvidia and AMD demanding more components for data centers, leading manufacturers to prioritize higher-margin data center chips over consumer-grade chips.
• Memory and storage chip prices have quadrupled over the past year, with costs expected to continue rising, prompting Apple and other companies like Microsoft to pass these increases on to consumers.
• Apple also raised prices on its HomePod speaker and Vision Pro mixed reality headset, marking an unusual timing for price hikes as they typically coincide with new product releases.