The global electronics market is facing an unprecedented component crisis. Due to the overwhelming demand for chips for AI data centers, giants like Apple and Microsoft (Xbox) are forced to pass additional costs onto consumers.
Currently, there is a sharp increase in the cost of memory and storage, which has already led to a nearly 20% rise in prices for popular gadgets.
Price Shock from Apple: MacBook and iPad Become More Expensive
Apple has officially raised prices on some models of its laptops and tablets worldwide. Company representatives note that the industry is facing an unprecedented challenge
due to the extraordinary demand for AI chips.
- MacBook Pro (1 TB): the price in the US increased from $1,699 to $1,999.
- Apple Neo (budget laptop): in the UK, the cost jumped from £599 to £699 just a few months after release.
Outgoing CEO Tim Cook warned in a Wall Street Journal interview back in June that price increases are inevitable
due to the volatile microchip market. According to him, memory prices need to return to a reasonable level for consumer goods production to remain profitable.
Xbox Follows Suit: Second Price Increase This Year
Shortly after Apple’s announcement, Microsoft’s gaming division also announced a significant price hike for its consoles. The new prices will take effect in August.
- The base version of the Xbox console will increase by $100 — to $499.
- The version with increased memory will add $150 — to $749.
Considering the previous price increase in October of $20-$70, the new consoles will cost gamers 30-40% more than a year ago. The company stated that memory costs have already doubled and predict another doubling by 2027. This leaves the door open for further price hikes in the future.
“The entire consumer electronics industry is struggling with the current component crisis, but its effects hit gaming consoles particularly hard,” emphasized Xbox.
AI vs. Gadgets: What Do Analysts Say?
Market experts agree: the main reason for the increase in RAM and storage prices is the massive construction of data centers to support AI. This has created a severe imbalance between supply and demand.
Tech analyst Paolo Pescatore notes that the AI boom is now directly affecting ordinary consumers’ wallets. “This is a significant moment, as even Apple, with its scale and purchasing power, is no longer immune to rising prices of key components,” he told the WorldSignalPost.
Additionally, Taiwanese giant TSMC (the world’s largest chip manufacturer for Apple, Nvidia, and AMD) confirms that global inflation is also forcing a reevaluation of pricing.
Should We Expect Price Increases from Other Brands?
David Narangjo from research firm Counterpoint expects other PC and tablet manufacturers to soon follow Apple’s lead. They may not only raise prices but also cancel discounts on basic models, focusing on the premium segment.
This trend has already affected other players. For example, gaming giant Valve was forced to abandon its initial pricing plans for its Steam Machine gaming PC, releasing it at a price of $1,049 instead of the expected lower cost.
Will the new prices deter buyers? Dipanjan Chatterjee, vice president of Forrester, is confident that Apple’s loyal audience will accept these changes without much resistance. “If anyone can weather price increases with minimal losses, it’s Apple,” he concludes.