Australians woke up on Friday to steep price hikes on Apple and Microsoft products, with the tech giants citing surging costs for AI-related memory chips. Apple raised the MacBook 13-inch from $1,799 to $2,099, while iPad prices jumped by 25%. Microsoft also lifted Xbox prices overnight as a wave of device increases hits consumers.
Apple explicitly blamed an AI-driven cost crunch for computer parts, though it left iPhone prices unchanged for now. Analysts at both firms predict Apple will raise flagship phone prices later this year, suggesting the reprieve is temporary. The moves mark one of the broadest coordinated price increases from major tech companies in recent memory.
The price surges stem from a global shortage of memory chips used to power AI systems, according to both companies. Apple's MacBook 13-inch rose by A$300, while iPad costs increased by a quarter. Microsoft's overnight Xbox price hike adds to the pattern, with experts expecting further device increases across the industry.
Consumers face immediate higher costs for laptops, tablets, and gaming consoles, with smartphones likely next. The chip shortage shows no signs of easing, and Apple's iPhone reprieve may be short-lived. Industry watchers warn that more product categories could follow if component costs continue climbing.
Some analysts question whether AI demand alone justifies such sharp increases, noting that corporate margins remain healthy. They suggest that the price hikes may partly reflect strategic moves to boost profits rather than pure cost pass-through.