Apple and Microsoft Hike Prices Amid Global Component Shortage

Australians are facing significant price increases for Apple devices, including MacBooks and iPads, due to rising component costs. The price hike, which affects devices worldwide, has seen the MacBook Air with a 13-inch display increase to $2,099, up from $1,799, and the MacBook Pro 14-inch start at $3,199. The iPad range has also been affected, with prices starting at $749, up from $599. Microsoft has also lifted its Xbox prices, citing storage and memory price increases.

The company has announced it will cease selling the 2TB model and increase prices for 512GB and 1TB models by US$100 and US$150, respectively. The price hikes are attributed to a global shortage of memory chips, dubbed the 'RAMageddon', which is affecting the production of consumer devices. Experts predict that the shortage will permanently alter the economics of device production, leading to higher prices for consumers. Apple's share price fell 6.

15% on Thursday, wiping US$250bn from its market value, as the company announced it could no longer absorb the rising component costs. The price increases are expected to have a significant impact on the tech industry, with analysts warning that the shortage will lead to a permanent shift in product pricing and mix. As the demand for computing power and AI usage continues to rise, companies are being forced to adapt to the new reality of higher component costs, leaving consumers to bear the brunt of the price hikes.

Source: The Guardian