Apple has increased prices on selected MacBooks and iPads by nearly 20%, while Xbox has announced another major price increase for its gaming consoles as the g...
Apple has increased prices on selected MacBooks and iPads by nearly 20%, while Xbox has announced another major price increase for its gaming consoles as the global shortage of memory and storage components continues.
Apple has increased the prices of selected laptops and tablets by nearly 20%, citing rising costs for key electronic components driven by growing demand for artificial intelligence (AI) infrastructure. The announcement came as Xbox also confirmed another significant price increase for its gaming consoles, saying the global components crisis continues to affect the consumer electronics industry.
The iPhone maker said the electronics sector is facing an “unprecedented challenge” because of an “extraordinary surge” in demand for chips used to power AI data centres. The company said it had never experienced such rapid increases in component prices and was working to find solutions while continuing to supply customers.
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“We have never seen a component price increase this much, this quickly,” Apple said in a statement. The company added that it had shielded customers from higher costs for as long as possible but had reached a point where prices on selected products, including iPads and Mac computers, had to increase.
Among the affected products is the MacBook Pro with one terabyte of storage, which has increased from US$1,699 to US$1,999 in the United States. In the United Kingdom, Apple’s entry-level Neo laptop has risen from £599 to £699 only months after its launch, reflecting the growing pressure on hardware manufacturers.
Shortly after Apple’s announcement, Xbox revealed that it would increase console prices for the second time in less than a year. The Microsoft-owned gaming company said the price of its standard console would rise by US$100 to US$499, while the higher-capacity version would increase by US$150 to US$749. The new prices will take effect in August.
Xbox said it had hoped to avoid another price increase but blamed rising costs for storage and memory components. The company stated that the entire consumer electronics industry is struggling with the current components crisis, with gaming consoles among the hardest-hit products. It also warned that the cost of memory and storage has already more than doubled and could double again by 2027.
The latest increases mean Xbox consoles will now cost between 30% and 40% more than they did at the same time last year. The company previously raised prices by between US$20 and US$70 in October, making this its second increase within twelve months.
Industry analysts say the rapid expansion of AI technology is driving much of the increase in component prices. Demand for memory and storage chips, particularly RAM used in computers and servers, has grown sharply as technology companies continue building AI data centres. This has created an imbalance between supply and demand, leading to higher costs across the electronics sector.
Technology analyst Paolo Pescatore said Apple’s decision demonstrated that the AI boom is now having a direct effect on consumer electronics. He noted that even Apple, with its global purchasing power, is no longer protected from rising prices for key components. Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, has also pointed to inflation as a factor increasing production costs.
Market research firms expect other technology companies to follow Apple’s lead. David Naranjo of Counterpoint said manufacturers could increase prices on selected products, reduce discounts on entry-level devices or shift their focus toward premium products. Dipanjan Chatterjee of Forrester said Apple’s loyal customer base is likely to accept the higher prices with limited resistance. Earlier this month, Apple’s outgoing chief executive Tim Cook also described price increases as “unavoidable” because of the current memory chip situation, adding that supply and pricing would need to return to sustainable levels for consumer products.
The rising cost of components is already affecting a wide range of technology products beyond smartphones, laptops and tablets. Earlier this week, gaming company Valve announced that its planned launch price for the Steam Machine was no longer possible because of increasing hardware costs. The company instead introduced the gaming PC at £879 in the United Kingdom and US$1,049 in the United States, highlighting the broader impact of rising component prices across the technology industry.
