Apple and Microsoft hike prices as AI crunches global memory chip supply

Apple has begun to raise prices for its iPad, Mac, HomePod, and Apple TV set-top box due to unprecedented increases in component prices, driven by AI demand.
The lack of supply in critical components like RAM, prioritized for AI data centres, has led to widespread price increases across consumer electronics, including Apple’s devices, gaming consoles (e.g., Xbox, PlayStation, Nintendo), and Steam products.
The price hike reflects the “true cost” of production as these supply chain issues continue, with industry experts expecting further pressure on supply and pricing throughout the year.
The memory chip shortage is expected to persist at least through 2027, according to Micron, as AI-driven demand continues to outpace supply.
Manufacturers are expanding production facilities in response to demand, which could lead to lower prices as supply catches up with demand.