Apple has announced price increases on several products, citing rising memory chip costs and supply chain challenges, with industry experts predicting similar moves by other brands.

PULSE POINTS

❓ WHAT HAPPENED: Apple has raised prices on several products, including the MacBook Pro with one terabyte of storage, which increased from $1,699 to $1,999 in the U.S., and the entry-level Neo laptop in the United Kingdom, which rose from £599 to £699 (~$790 to ~$920). The company attributed the increases to rising costs of key components, particularly memory chips.📺 DETAIL: Industry analysts said the move highlights how the artificial intelligence (AI) boom is affecting consumer electronics, with even Apple unable to avoid rising component costs. Chipmaker TSMC has also warned that inflation and higher production expenses could lead to further increases across the sector. Analysts expect other PC and tablet manufacturers to follow suit through price rises, reduced discounts, or a greater focus on premium products. Apple believes its loyal customer base will largely absorb the increases, while outgoing chief executive Tim Cook recently described current memory chip pricing as “unsustainable” and said higher prices were unavoidable.💬 KEY QUOTE: “Even Apple, with its scale and buying power, is no longer immune to the rising cost of key components,” said tech analyst Paolo Pescatore.🎯 IMPACT: The price increases could set a precedent for other PC and tablet manufacturers. While Apple’s loyal customer base is expected to absorb the hikes without significant backlash, the broader tech industry may face challenges in maintaining affordability.

Image by relux.

Newsletter Need to Know.

Your free, daily feed from The National Pulse.

Thank You!

You are now subscribed to our newsletter.

Join Pulse+ to comment below, and receive exclusive e-mail analyses.