Apple hikes Mac and iPad prices amid AI boom

Apple raised the prices of its Macs and iPads on Thursday, citing the rising cost of memory and storage chips as the artificial intelligence boom created a component frenzy.

Apple has raised the prices of some laptop and tablet models by $200 or more. For example, the base model MacBook Pro now costs $1,999, up from $1,699. Apple’s entry-level laptop, the MacBook Neo, now costs $699, which is $100 more than when it was introduced in March.

The price of the iPad Air rose $150 to $749, while the price of the iPad Pro jumped $200 to $1,199.

The increases show that even Apple, with its vast supply chain, is not immune to the global shortage of memory and storage chips. AI chipmakers such as Nvidia and Advanced Micro Devices have demanded more components for their own chips, which are then used in data centers to develop and operate AI systems.

The surge in demand has led memory chip makers such as Micron to focus on production for data centers, which tend to use more expensive chips than consumer electronics. As a result, these companies are making more money but shipping fewer consumer-grade chips that have become more expensive.

The prices of memory and storage chips have quadrupled over the past year, according to analysts’ estimates, and the cost of these components is expected to continue to rise.

These costs are now passed on to consumers. Microsoft also raised the prices of its Surface laptops in April.

“We’ve never seen component prices rise so quickly and so quickly,” an Apple spokesperson said in a statement. “Now we’ve reached the point where we have to start raising prices.”

Apple CEO Tim Cook said during an April call with investors that the company expects “significantly higher memory costs” for the quarter that runs through June.

“We believe memory costs will continue to impact our business beyond the June quarter,” Mr. Cook said.

The company also said it expects its profit margins to decline slightly for the quarter.

Apple also raised the prices of its HomePod speaker and its Vision Pro mixed reality headset on Thursday.

The timing of the price hike was unusual. Apple usually raises prices when it releases new or updated products. Last September, Apple released new iPhones and raised the prices of some models by $100.