Apple has hiked prices on MacBook and iPad models, citing increased memory and storage costs. The company’s online store went dark briefly last Thursday before being updated with the new prices.
The affected products include the entry-level MacBook Neo, now priced at £699 (up from £599), and the MacBook Air 512GB, which will cost $1,299 (from $1,099). The MacBook Pro 1T also sees a price increase, rising to $1,999 (from $1,699).
Similarly, the iPad Air 128GB now costs $749 (up from $599), and the iPad Pro Wifi 256GB increases to $1,199 (from $999). Apple claims it’s facing an “unprecedented challenge” due to the rapid expansion of AI data centres, which has driven a surge in demand for memory and storage.
The company’s CEO, Tim Cook, had previously warned that Apple could no longer shield customers from component cost spikes tied to the artificial intelligence boom. This price increase is seen as a necessary move by Apple to pass on these higher costs to consumers.
According to industry analysts, memory and storage prices have quadrupled in the past three quarters due to suppliers favouring production for high-bandwidth memory used in AI servers. Suppliers like Micron are reaping the benefits of this trend, with revenue soaring and gross margins jumping significantly.
Apple typically employs a pricing strategy that involves removing lower-cost options or steering buyers towards higher-capacity models. The company may also use storage upgrades to lift prices and make higher-memory configurations more appealing to consumers.
As the AI push continues, Apple is expected to focus on higher-memory configurations, with many new devices set to feature 12GB of RAM. This will enable users to access a full suite of Apple Intelligence features and take advantage of more advanced on-device AI capabilities.
The company’s pricing strategy may also be influenced by its plans for future hardware launches, including the expected introduction of foldable iPhones. Analysts predict that these devices will come with higher price tags due to their advanced features and capabilities.
Overall, Apple’s decision to hike prices on MacBook and iPad models reflects the company’s efforts to adapt to changing market conditions and maintain profitability in a rapidly evolving industry.
