Apple Raises Costs for Macbooks, iPads, and iPhones by $200

Last Thursday, Apple announced increased prices for iPads and Macbooks due to memory chip shortages caused by AI’s growing popularity. For example, memory chip makers like Micron have recently started prioritizing AI companies like Nvidia over electronic makers like Apple. AI centers require large amounts of memory chips. As a result, chip makers are being overwhelmed, triggering worldwide shortages.

Analysts also expect iPhone prices to increase later this year: Macbooks, iPads, and Pro and Pro Max iPhone models may even increase by up to $200! Nabila Popal, a senior research director at IDC (International Data Corporation) says, “The iPhone isn’t spared. Its hike is coming.” He also says, “It was incredibly strategic for Apple to make the price hike announcements prior to the iPhone Fall launch, so the headlines at launch is not the price hikes but the value the new phones bring.”

Apple’s share price dropped by 6% on Thursday. It’s even estimated that smartphone sales will drop by 14% and that PC sales will drop by 11.3%. Apple’s CEO Tim Cook shares that he sees this change to be a long-lasting impact on his company: “Beyond the June quarter, we believe memory costs will drive an increasing impact on our business.”

Another spokesperson for Apple then expresses their regret about the current situation, saying, “We have now reached a point where we need to begin raising prices on a number of products, including today’s increases for iPad and Mac. We know this is not welcome news, and we are working tirelessly to find solutions.”