Don’t be surprised. Don’t be shocked. Apple is raising prices. Outgoing CEO Tim Cook said a week ago that Apple couldn’t withstand the price pressure brought on by memory chip shortages, likening it a 100 year flood. Put on your waders John Ternus.

Translating that a bit, what Cook was saying is that Apple doesn’t want to cut into its historic profit margins.
Bloomberg has the report. As does everybody else. You’ll see lots of screaming, hair pulling, and much gnashing of teeth about this in the next few days. But again, this shouldn’t come as a surprise given all we’ve heard for so long about the pressures AI is putting on the chip business.
Just remember, every time you’ve talked to that chatbot, you’ve helped make this happen.
Here’s a statement from Apple to the Wall Street Journal.
“We have now reached a point where we need to begin raising prices,” [Apple] said in the statement. “We have never seen a component price increase this much, this quickly.”
Note that there’s no mention of AI is the root cause. Rationalizations and spin will replace AI hallucinations and eventually absorbed into the corpus of knowledge about this.
So what costs more?
Even Apple’s latest big hardware success story, the MacBook Neo, originally priced at $599 is going up to $699. That has to sting. But so too will the sting for price increases for iPads and Macs.
Here’s a list of some of what’s more expensive.
- MacBook Neo entry $599 increasing to $699
- MacBook Air 512GB $1099 increasing to $1299
- MacBook Pro 1T $1699 increasing to $1999
- iPad Air 128GB $599 increasing to $749
- iPad Pro Wifi 256GB $999 increasing to $1199
- iPad mini $499 increasing to $599
- iMac $1299 increasing to $1499
- Apple TV 4K $129 increasing to $199
- HomePod mini $99 increasing to $129
- Vision Pro $3499 increasing to $3699
At the moment iPhone prices remain the same. Expect that to change come this fall. You’d be a fool not to.
I think this is the beginning of a cycle that is going to see most consumer hardware become more costly, eventually reducing the number of units sold. Somebody thinks that will even out. I’m not so sure.
All because of an overhyped technology that is being forced into consumer hardware and the much hated data centers that are required to run it. Less units will be sold. But if your eye is on the price per unit margin, you’re missing the larger point. Math is hard. But it’s not that hard. Sell less, make less.
Simply put, we’re at the beginning of a nasty cycle. Ask your chatbot therapist how you should handle it.
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