Apple announced on Thursday that it is increasing prices across its MacBook and iPad lines, alongside other hardware. The company attributes these adjustments to the soaring costs of memory and storage components, driven by the global expansion of artificial intelligence infrastructure.
Following the announcement, Apple’s stock dropped by more than 4.7 percent during morning trading. The adjustments on the company’s US website reflect price jumps between $30 and $300. Specifically, the 14-inch MacBook Pro has moved from $1,700 to $2,000, the iPad Air has risen from $600 to $750, and the Apple TV device now costs $200, up from $130. The iPhone remains unaffected by this current round of price changes.
An Apple representative stated that the industry is experiencing an unprecedented surge in demand for memory due to AI data center construction, leading to the fastest and most significant component price hikes the company has ever encountered. While the corporation reported $416 billion in revenue last fiscal year, leadership noted that they can no longer absorb these costs. Outgoing CEO Tim Cook previously described these market conditions as a century-level event, noting that reduced supply paired with high demand has forced these adjustments.
John Ternus is set to inherit these challenges when he takes over as CEO on September 1, occurring shortly before the launch of the next iPhone generation.
