Apple increases prices for Macs and iPads, blaming a shortage of memory chips

Apple on Thursday (June 25) announced an increase in prices for Macs and iPads, citing a memory chip shortage brought on by the artificial intelligence boom.

The Cupertino, California-based company called the demand spike an "unprecedented challenge" for the consumer electronics industry.

"The rapid expansion of AI data centres has created an extraordinary surge in demand for memory and storage. We have never seen a component price increase this much, this quickly," the company said in a written statement.

The new, entry-level MacBook Neo will now cost US$699, up from US$599. The 512 gigabyte MacBook Air now costs US$1,299, up from US$1,099. The one terabyte MacBook Pro is US$1,999, up from US$1,699.

The 128 gigabyte iPad Air is now US$749, up from US$599, while the 256 gigabyte iPad Pro Wifi is now US$1,199, up from US$999.

Analysts expect iPhone prices to rise later this year.

IDC analyst Nabila Popal said the latest price hikes were higher than she had expected, which suggests the iPhone price hikes may also be higher than expected, perhaps as much as US$200 for the iPhone Pro and Pro Max models.

"I think the days of US$50 price increases are over," she said.

Apple said that while it has shielded customers from the component price surges so far, "we have now reached a point where we need to begin raising prices on a number of products, including today's increases for iPad and Mac. We know this is not welcome news, and we are working tirelessly to find solutions."

Shares of Apple fell US$13.29, or 4.5 per cent, to US$279.88 on Thursday afternoon.

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