The artificial intelligence bubble is driving up chip prices, and the consumer electronics market is now feeling the impact. Apple just raised the prices of 15 core products, and Microsoft is doing the same for the Xbox.
For personal computers, RAM is a chip that has always accounted for about 15 to 20 per cent of the total cost. The recent growth of AI data centres has led to an imbalance between supply and demand for memory.
This imbalance has seen the cost of RAM in PCs increase towards 30 to 40 per cent of the total unit cost.
Steve Mason, General Manager of PC manufacturing company CyberPowerPC, told the BBC earlier this year, “We are being quoted costs around 500% higher than they were only a couple of months ago.”
READ: Following London Success, Apple Deploys Global Killswitch Feature to Eliminate Stolen iPhones Market
Smart device manufacturers are now reacting to these price changes, with Apple’s outgoing CEO Tim Cook stating the company needs to “begin raising prices on a number of products”.
Today, the MacBook and iPad maker increased prices across different categories. Apple has increased the price of the base MacBook Pro by $300 to $1,999. The base MacBook Air is up $200 to $1,299.
These price changes also affect iPads; the iPad Air now costs $150 more, bringing its price to $749. The iPad Pro is up $200 to $1,199.
The biggest price increase percentage-wise is in the cost of Apple TV 4K, the company’s premium streaming device. Apple increased its price by 54.2%.
In terms of cost, Apple’s desktop workstation, the Mac Studio (M3 Ultra), has the biggest hike, increasing by $1,300 to $5,299.
| Product | Old Price | New Price | Increase in price | % increase in price |
| Apple TV 4K | $129 | $199 | +$70 | 54.26% |
| Mac Studio (M3 Ultra) | $3,999 | $5,299 | +$1,300 | 32.51% |
| HomePod mini | $99 | $129 | +$30 | 30.30% |
| iPad | $349 | $449 | +$100 | 28.65% |
| iPad Air | $599 | $749 | +$150 | 25.04% |
| Mac Studio (M4 Max) | $1,999 | $2,499 | +$500 | 25.01% |
| iPad mini | $499 | $599 | +$100 | 20.04% |
| iPad Pro | $999 | $1,199 | +$200 | 20.02% |
| MacBook Air | $1,099 | $1,299 | +$200 | 18.20% |
| MacBook Pro | $1,699 | $1,999 | +$300 | 17.66% |
| HomePod | $299 | $349 | +$50 | 16.72% |
| MacBook Neo | $599 | $699 | +$100 | 16.69% |
| iMac | $1,299 | $1,499 | +$200 | 15.40% |
| Mac mini (M4 Pro) | $1,399 | $1,599 | +$200 | 14.30% |
| Vision Pro | $3,499 | $3,699 | +$200 | 5.72% |
Notably, there are no price changes to the iPhone, Apple Watch, and AirPods for now.
Xbox Follows Apple With New Prices
In August, Microsoft will implement price hikes across its Xbox lineup, with the Xbox Series S 1TB seeing the largest percentage jump.
The company states that rising console storage and memory prices have necessitated this price hike.
“Unfortunately, console storage and memory prices have increased by more than 2.5x, and we expect another doubling by the fall of 2027,” Xbox noted in a statement.
| Product | Old Price | New Price | Increase in price | % increase in price |
| Xbox Series S 1TB | $449 | $599 | +$150 | 33.41% |
| Xbox Series S 512GB | $399 | $499 | +$100 | 25.06% |
| Xbox Series X 1TB Digital | $599 | $749 | +$150 | 25.04% |
| Xbox Series X 1TB | $649 | $799 | +$150 | 23.11% |
