Apple, Microsoft raise prices amid AI-driven component cost surve

Apple and Microsoft have said they are raising prices on a range of consumer electronics as surging demand from artificial intelligence data centers drives up the cost of memory and storage components.

Apple announced price increases for MacBook computers, iPad tablets and other products, while Microsoft said it will raise Xbox console prices worldwide by $100 to $150 starting Aug. 1.

On Apple’s U.S. website, price increases ranged from $30 to $300. The 14-inch MacBook Pro now sells for $2,000, up from $1,700, while the iPad Air increased from $600 to $750. The Apple TV streaming device rose from $130 to $200. The price of the iPhone remained unchanged.

“The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage,” an Apple spokesperson said. “We have never seen a component price increase this much, this quickly.”