Apple, Microsoft hike prices over surging chip costs

Apple and Microsoft have implemented significant price increases on several of their popular products due to surging memory chip costs. Apple, in particular, raised prices on its Macs and iPads by 20 percent or more, with specific models like the MacBook Air and iPad Air seeing substantial hikes. The company stated that the rapid growth of AI data centers has driven an unprecedented demand for memory and storage components, forcing them to pass on these rising costs to consumers after previously absorbing them. This move follows a period where Apple had shielded customers from such increases. The article notes that Apple's stock price experienced a notable decline after the announcement of these price adjustments.

Apple has increased prices for its iPad and MacBook product lines, citing the rising costs of memory and storage chips. This surge in component prices is attributed to the AI industry's demand for datacenter buildouts, which has led memory manufacturers to prioritize orders from AI chipmakers. Apple stated it could no longer shield customers from these increases, noting significant price hikes for specific MacBook configurations and the Neo laptop. While the iPhone is not currently affected, analysts anticipate future price increases for the device. The company also raised prices for its HomePod smart speakers and Apple TV.

China's electric vehicle manufacturer BYD is increasing the price of its DiPilot 300 driver-assistance system by 21%, from 9,900 yuan to 12,000 yuan, effective Friday. This price hike is attributed to the significant rise in global storage hardware costs, impacting the memory chips essential for the system's lidar sensors and data processing. Analysts predict that premium cars, heavily reliant on advanced sensors and high-performance chips, will be increasingly affected by this memory "super cycle." While mid-range models are expected to bear the brunt of these price increases, the trend is also extending to other consumer electronics like tablets and virtual reality headsets, with companies like Pico also announcing price adjustments due to similar cost pressures.