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Apple and Xbox price hikes: AI’s hidden cost

As tech giants adjust prices, it’s clear even top brands can’t escape rising component costs.

Apple has increased the price of MacBooks and iPads by nearly 20%, citing an unprecedented surge in demand for chips to power AI data centres. Following suit, Xbox raised the price of its console by $100, blaming a components crisis.


The hike in memory and storage costs, particularly RAM, is attributed to the proliferation of data centres needed for AI technology. This imbalance between supply and demand has forced even tech giants like Apple and TSMC to adapt their pricing strategies.


Analysts predict that other PC and tablet brands may follow suit by either increasing prices or cutting discounts on entry-level models. Despite these changes, Tim Cook of Apple believes his loyal customer base will absorb the increase with minimal backlash.


The impact extends beyond gaming consoles; Valve has also had to adjust its pricing for the Steam Machine. This trend highlights how the AI boom is quietly reshaping consumer electronics and technology markets worldwide.

Original source:  https://www.bbc.co.uk/news/articles/c3ryj81ywlro?at_medium=RSS&at_campaign=rss
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