Apple increases MacBook and iPad prices by 20%

{"text":[[{"start":8.1,"text":"Apple has increased the price of MacBooks and iPads by about 20 per cent, one of the broadest price rises in its history, as the iPhone maker blamed memory chip shortages caused by the AI infrastructure boom."}],[{"start":21.799999999999997,"text":"Apple’s decision to substantially increase the cost of its entire line of laptop and tablet products spooked investors on Thursday, with a 6.1 per cent share fall wiping $263bn from Apple’s market capitalisation."}],[{"start":36.3,"text":"It marked Apple’s biggest single-day fall since early April last year, when US President Donald Trump announced his “liberation day” tariffs, and the stock’s second-biggest one-day drop in valuation on record."}],[{"start":50.65,"text":"The $4tn US tech giant said on Thursday that the consumer technology industry was facing an “unprecedented challenge”, with memory prices rising so quickly that it would have to pass the costs on to customers. "}],[{"start":63.15,"text":"Apple chief executive Tim Cook had warned last week that price increases this year would be “unavoidable” because of the “unsustainable” cost of memory and storage. "}],[{"start":73.2,"text":"But it has so far stopped short of raising prices for the iPhone, Apple’s blockbuster product that still accounts for about half of its revenue."}],[{"start":81,"text":"“The rapid expansion of AI data centres has created an extraordinary surge in demand for memory and storage,” Apple said. “We know this is not welcome news, and we are working tirelessly to find solutions.” "}],[{"start":null,"text":"

"}],[{"start":95,"text":"Apple has historically announced targeted price rises with the launch of new generations of devices, often limiting them to specific models or dropping cheaper models outright. A uniform overnight price increase across two major product lines is rare for Apple."}],[{"start":111.65,"text":"Prices across Apple’s iPad and MacBook line-up have increased in the region of 20 per cent. The 512GB MacBook Air, for example, has gone from $1,099 to $1,299, while the iPad Pro 256GB has gone from $999 to $1,199. The MacBook Neo, Apple’s lower-cost laptop launched in March, has jumped by 25 per cent, from $599 to $749. "}],[{"start":143.25,"text":"The company also raised the price of its HomePod, Vision Pro headset and Apple TV streaming boxes."}],[{"start":149.35,"text":"By Apple’s own account, the memory crunch triggered by the AI infrastructure boom is proving more disruptive to its supply chain than any other crisis in the past few years. "}],[{"start":159.54999999999998,"text":"Apple defied expectations it would raise prices last year in the aftermath of Trump’s tariff war, and also held off during the massive supply chain disruptions of the Covid-19 pandemic."}],[{"start":172.6,"text":"The iPhone maker joins a growing list of consumer technology companies that have raised the prices of their products citing the memory shortfall this year. Laptop makers Dell, HP, Lenovo and Asus have already flagged similar price increases, while Samsung raised the price of two models of its new S26 smartphone in the US by $100. "}],[{"start":193.95,"text":"Investors have increasingly questioned how Apple, the world’s most valuable consumer electronics brand, will navigate the soaring price of DRam and Nand memory. "}],[{"start":203.5,"text":"Its efforts to bring more chip production in-house, and its ability as a dominant customer to squeeze other suppliers in its chain, have been seen as potential ways for it to offset the impact without passing the costs on to consumers."}],[{"start":217.15,"text":"The DRam market is dominated by US company Micron and South Korea’s SK Hynix and Samsung, all three of which have surpassed $1tn valuations this year as they profit from the massive demand for advanced high-bandwidth memory from AI “hyperscalers” such as Google, Meta and Amazon. "}],[{"start":237.70000000000002,"text":"With finite manufacturing capabilities, these three top suppliers have pivoted to prioritise high-bandwidth memory over traditional consumer memory. Micron on Wednesday reported a 15-fold increase in quarterly profits, with margins in excess of 80 per cent. Its shares were up 16 per cent on Thursday afternoon. "}],[{"start":258.85,"text":"Nand memory suppliers such as California’s Sandisk and Japan’s Kioxia have also seen their shares soar since the start of the year. "}],[{"start":268.15000000000003,"text":"Apple has been exploring the option of turning to Chinese memory suppliers YMTC and CXMT, but has previously faced public pushback from US policymakers, including current secretary of state Marco Rubio, who flagged security risks in 2022. "}],[{"start":283.85,"text":"A Morgan Stanley study this month found that memory prices had increased sixfold in the past year. It said this “chipflation” was the direct result of AI hyperscalers squeezing out traditional buyers in the consumer memory space."}],[{"start":299.45000000000005,"text":"This year, JPMorgan analysts estimated that DRam and Nand would go from about a 10 to 15 per cent share of the total “bill of materials” for the components in an iPhone to more than 45 per cent by 2027."}],[{"start":313.15000000000003,"text":"Apple still managed to grow the margin on its hardware products in the March quarter, rising to 38.7 per cent compared with 35.9 per cent the year before. It reported $29.6bn in total profits for the quarter."}],[{"start":335.30000000000007,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1782434929_3450.mp3"}