The recent surge in memory chip costs, driven by the rapid expansion of AI data centers, has prompted Apple and Microsoft to increase prices for some of their best-selling products. Apple has raised prices across its Mac and iPad range, with some models seeing hikes of 20 percent or more. The base model MacBook Air now costs $1,299, up from $1,099, while the MacBook Pro and iPad Pro have also seen significant price increases. Apple attributes the price hikes to the extraordinary surge in demand for memory and storage, which has led to unprecedented component price increases. Microsoft has also cited rising chip prices as the reason for increasing the price of its Xbox gaming console, with the 512 GB and 1 TB models seeing price hikes of $100 and $150, respectively. The company notes that console storage and memory prices have increased by more than 2.5x and are expected to double again by the fall of 2027. These price increases are likely to affect sales, with consumer tech analyst Trevor Long expecting a challenging year ahead for leading tech players like Apple. The key to success will be how closely companies can price their new products to previous models, with Long predicting a $50-150 price rise for the next iPhone. As the entire consumer electronics industry struggles with the current components crisis, companies will need to make careful system design decisions and weigh practical engineering trade-offs to mitigate the impact of rising chip costs.

Source: Al Jazeera