Apple has implemented significant price increases on its Mac and iPad products, raising costs by as much as $1,300, marking its first major price adjustment in years. This decision, announced on Thursday, comes amid a widespread memory chip shortage driven by heightened demand from AI data center construction. Key models have seen price hikes ranging from $100 to $300, with the M5 MacBook Pro now starting at $1,999 and the Mac Studio increasing by $1,300. As a result, Apple’s stock fell approximately 6%, representing its most substantial single-day decline in over a year.
CEO Tim Cook described the situation as a “hundred-year flood” in component costs, with DRAM prices soaring nearly 90% and NAND flash storage prices experiencing similar rises in recent months. This dramatic increase in costs has forced Apple to adjust pricing to maintain its profit margins, as memory and storage costs have climbed to four times their previous levels. The upcoming release of new iPhone models, traditionally a major revenue source, may also bring further price increases, potentially adding around $200 in component costs per device.
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