Home / Technology / AI Boom Sparks Steep Price Hikes on Apple, Microsoft Gear
AI Boom Sparks Steep Price Hikes on Apple, Microsoft Gear
26 Jun
Summary
- Apple and Microsoft raised prices significantly on popular products.
- Soaring memory chip costs due to AI demand are the primary reason.
- Xbox consoles and various Macs and iPads are affected by price increases.
Tech giants Apple and Microsoft have recently announced significant price hikes for a range of their flagship products. These increases are attributed to a dramatic surge in memory chip costs, fueled by the rapid expansion of AI data centers and their demand for storage.
Apple has raised prices across its Mac and iPad lines, with some popular models experiencing increases of 20 percent or more. For instance, the base MacBook Air now costs $1,299, up from $1,099, and the iPad Air increased from $599 to $749. The Mac Studio M3 Ultra saw the most substantial jump, from $3,999 to $5,299.
Microsoft has also adjusted its pricing, citing similar component cost issues. The 512 GB and 1 TB models of the Xbox gaming console will see price increases of $100 and $150, respectively. The company noted that console storage and memory prices have more than doubled, impacting the entire consumer electronics sector.
