Apple hikes MacBook, iPad prices by 20–42% amid rising semiconductor chip costs

Apple's cheapest laptop, the MacBook Neo, is becoming more expensive. The starting price of the MacBook Neo has gone up from $599 to $699, only a few months after it launched. The MacBook Neo was designed to compete with low-cost Windows laptops and Chromebooks. The laptop was aimed at helping Apple gain market share in the budget computer segment.

Apple faces rising chip costsThe price hikes show that even Apple is feeling pressure from rising chip costs. Apple is known for having one of the strongest supply chains in the tech industry, but it still could not avoid the impact of higher memory prices, as noted by Reuters report. The main reason behind the increase is a shortage of memory chips. Memory manufacturers have been focusing more on supplying AI companies, leaving less supply available for consumer electronics makers.

Companies building AI data centers are buying huge amounts of memory chips. Firms such as Nvidia have been placing large orders, increasing demand across the industry. Memory makers are prioritizing AI customers because those orders are more profitable. This has helped memory companies earn record profits while creating supply pressure for smartphone and PC manufacturers.