economy
The AI price shock is here: Apple, Microsoft hike prices
AI is driving up the price of working and playing.
TL;DR
- The AI boom is driving up costs for resources and components, leading to price increases for electronic devices.
- Apple has raised prices on MacBook and iPad models by up to 25% due to soaring memory chip costs fueled by AI demand.
- Microsoft has announced price increases for Xbox consoles, with storage and memory costs doubling since last fall.
- Sony and Nintendo have also recently implemented similar price adjustments on their consoles.
- The AI boom is acting as a major buyer of scarce resources, including electricity, water, storage, and data-center space, impacting device makers.
- Prices for computer software and accessories saw a record 14.5% jump in May, ending a 25-year trend of decreasing prices.
- While labor market effects of AI are still being determined, pocketbook issues are becoming more apparent to consumers.