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Unfortunately the average Apple consumer is probably not even aware of the price hikes.

And that volume of buyers will enable Apple to continue to keep the prices up even if Ram and storage drop in price in the future.

There aren’t enough tech savvy folks who can vote with their wallet to make any noticeable difference - Tim knows that and a little negative PR now will be forgotten come Black Friday and holiday shopping time.
 
If anyone is interested, Target still has some things sold out everywhere else. Just ordered iPad Pro M4 256gb for $799, 5% less with Target card. $1199 on Apple.
 
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Unfortunately the average Apple consumer is probably not even aware of the price hikes.

And that volume of buyers will enable Apple to continue to keep the prices up even if Ram and storage drop in price in the future.

There aren’t enough tech savvy folks who can vote with their wallet to make any noticeable difference - Tim knows that and a little negative PR now will be forgotten come Black Friday and holiday shopping time.
You are so right they just know Apple products are luxury and they want it.
 
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That is why Apple did not increase the iPhone line. That is main stream and people will notice. In September when the new iPhones come out, they will be $200 to $300 hundred more. That is when people will notice. This is Apple throwing the can down the road.
 
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And as I previously stated, of course the situation hurts their business. But they will be hurt less than low end manufacturers. The decline in 7000 USD laptops going to 10.000 will be less than the decline in 700 USD laptops going to 1000. The 700 USD customer will hold out until they can afford one. For the 7000 USD customer it was never about being able to afford it.

I work in the luxury AV equipment business. When the world economy is in decline, it hurts the luxury equipment less because rich people are still rich. I’m not basing this on a theory, but on first hand experience. It’s not good for Apple, but it is less bad for Apple than for competition. Come back in a year and tell me I was wrong.

I am not doubting your analysis.

But there is a threshold with high-end equipment too: that is manufacturing and service costs versus total income.
As we have seen with the Mac Pro, Apple had to throw in the towel.

There was a very minor vocal group who actually needed 1.5 TB of RAM and who wanted the internal HD storage.
Yet their numbers were too small for Apple to really make a profit - all costs considered.
So they killed the Mac Pro.

The Studio is not rally a replacement for these people and a kludge at best.
But the Mac Pro is still gone.

The Gold Edition Apple Watch did not fare much better...
Once these reach $10,000 to $15,000 they don't sell anymore. Very apparently.

And I can see the very same thing happening with the high-end MacBook Ultra models.
There may not be enough rich people interested to buy it...
And the same for the highest configs of the MacBook Pro.
All these may go the way of the Mac Pro sooner than people think.

That is what I think.
 
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Apple today dramatically increased device prices across multiple product lines.


After temporarily taking it down earlier today, Apple's online store is back up with a series of product price increases. The changes are as follows:

  • HomePod mini: $129, up from $99 (+$30)
  • HomePod: $349, up from $299 (+$50)
  • Apple TV: $199, up from $129 (+$70)
  • iPad: $449, up from $349 (+$100)
  • iPad mini: $599, up from $499 (+$100)
  • iPad Air: $749, up from $599 (+$150)
  • iPad Pro: $1,199, up from $999 (+$200)
  • MacBook Neo: $699, up from $599 (+$100)
  • MacBook Air: $1,299, up from $1,099 (+$200)
  • MacBook Pro: $1,999 up from $1,699 (+$300)
  • iMac: $1,499, up from $1,299 (+$200)
  • Mac mini (M4 Pro): $1,599, up from $1,399 (+$200)
  • Mac Studio (M4 Max): $2,499, up from $1,999 (+$500)
  • Mac Studio (M3 Ultra): $5,299, up from $3,999 (+$1,300)
  • Vision Pro: $3,699, up from $3,499 (+$200)

The average price increase is $246.67. The iPhone, Apple Watch, AirPods, Studio Display, and accessories such as the Apple Pencil are seemingly the only unaffected product lines.

It is also of note that the 256GB Mac mini is now available again, but for $799. This is a $200 increase over when it was available before temporarily disappearing from the lineup earlier this year.

Last week, Apple announced that it was preparing to raise prices across its product lineup, with CEO Tim Cook confirming that that the move was inevitable. Cook made the announcement in an interview with The Wall Street Journal, citing the soaring cost of memory and storage chips. "Unfortunately, price increases are unavoidable," he said. "We're doing our best to mitigate the huge increases that are being passed to us, and we've been trying to shield our customers from the increases, but the situation has become unsustainable." Cook described the scale of the memory shortage as a "hundred-year flood," adding, "I've never seen anything like it in any area in over 40 years."

Apple has historically absorbed component cost swings rather than passing them on to customers, so this marks a notable shift in approach.

Article Link: Apple Just Increased Prices on MacBooks, iPads, and More
When Apple used to routinely create breakthrough products, the high prices seem justified. Now no longer.
 
£100 on a £329 iPad is enough price gouging to warrant a boycott in this house.

Time to start weaning off the Apple ecosystem methinks...
 
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I hate to inform you but anyone that worked for Harley Davidson had a computer relied on for testing product updates and factory training outside of a week long school class in Milwaukee or Phoenix and that was the 90's.The US auto industry seems to be interested in selling Trucks and SUV's that will in turn bite them while Tesla and the foreign car mfg's have had a run selling cars . Classis example the daughter or son is going off to college is mom and dad going to fork out 50000 on a truck or suv or 30000 on a car just something to think about

Interesting. Even in the home computer heyday through the early 90s - adoption was less than 15%. The internet changed that of course.
 
You just have (if you can) wait maybe a year.
AI will crash hard.
I mean AI won’t disappear fully but will be either small local models or a few expensive massive special use case models.
Chips are a boom and bust cycle.
 
Is it worth waiting for the iPad 12 a18/a19? I was hoping they might update the a16 screen with an antireflective coating. But if that's not happening, I'm not sure if I should wait. Not to mention the price might go up again.
 
You are so right they just know Apple products are luxury and they want it.
Or rather, they buy something when they need it, price hikes be darned.

Like here in Singapore, the price of the MBA went up by $300 (the price of a ram upgrade), or $5 a month (over 5 years). Will it sting if my M1 MBA were to break down tomorrow and I wanted to replace it? Yes. Would it break for the bank for me? Not really.

Funnily enough, the price of getting more ram hasn't increased at all (still $300 for an additional 8gb of ram). I wonder if Apple is regretting bumping their base models up to 16gb ram. 😛
 
ouch. that's a 20% increase across the board. I wonder if the prices will come down when memory production caught up with demand....LOL of course not.

These price increases will hit products in all brands and electronics that use memory chips. This will affect sales as people just keep their old devices longer. Looking forward to see how my apple stock is doing today :-(
 
.................................

Funnily enough, the price of getting more ram hasn't increased at all (still $300 for an additional 8gb of ram). I wonder if Apple is regretting bumping their base models up to 16gb ram. 😛
I thought Ram is now part of the CPU and those chips are made by apple themselves. So RAM should be shielded from the AI demand craziness.
 
Some of those increases are above expectations. Glad I got my air a month ago now. For the price sensitive, consider getting your iPhone now at current prices and just write off the 18 Pro series.
 
They really should have fought to keep the Neo at $599 (and the entry iPad at $349). They didn’t have a gob of RAM/flash to even pay for and they’re absolutely the gateway drugs.
They probably tried. It might cost closer for them to $400-500 to build the MacBook Neo due to the RAM and storage cost. The Macs are still the smallest footprint of sales of Apple compared to the iPhone and iPad.

32GB of DDR5 RAM for my gaming PC upgrade is about $500. My 2TB SSD I got in 2023 was $140, now it costs $479 on Amazon. It’s hitting everything. Doesn’t matter if it’s a “gob,” every component tied to RAM and storage has shot up in price due to the AI data center demand, these manufacturers are dictating their prices to all companies. They’re basically saying we don’t care about the normal consumers, we want Amazon, OpenAI, Google and those companies instead.
 
ouch. that's a 20% increase across the board. I wonder if the prices will come down when memory production caught up with demand....LOL of course not.

These price increases will hit products in all brands and electronics that use memory chips. This will affect sales as people just keep their old devices longer. Looking forward to see how my apple stock is doing today :-(
This may be true in the short term. But here is my take on what will happen next.

Right now, memory manufacturers are raising prices because demand from new data centers is overwhelming supply. They are also investing heavily in new plants and additional capacity to keep up with that demand.

But here is the problem: AI is a bubble right now. Everyone is talking about it, and everyone wants a piece of it. Every investor wants exposure to AI, and every company seems to want to launch some AI product.

Every subscription service now seems to offer a $20 premium AI add-on. Microsoft offers Copilot. Adobe offers its own AI tools. Almost every company appears to have some proprietary AI feature to sell as an upgrade to an existing service, often at a steep increase in subscription price.

I am not willing to pay for multiple proprietary AI subscriptions. Most of them are mediocre, if not outright bad. I already subscribe to the highest tiers of ChatGPT, Gemini, and Claude, and I receive high-quality service for a lot of money. I am not going to spend even more just to keep up with every minor service offering dubious AI add-ons. And most people, who are not even willing to pay for the low-tier version of ChatGPT, certainly will not pay for several additional AI services either.

There is already too much AI being offered. Demand exists, of course, but there is not enough money to sustain hefty subscription prices across the entire market. Much of the money currently being invested in AI will not generate a return. Eventually, the bubble will burst.

Of course, ChatGPT, Claude, Gemini, and the other major players will survive. But most of the weaker proprietary AI tools being developed today will not.

And if manufacturers are now increasing production, there may be a massive oversupply of RAM once the bubble bursts. When that happens, memory prices will collapse.

Even if Apple and other PC manufacturers are reluctant to reduce consumer prices, they may eventually be forced to do so. RAM will be widely available for custom-built machines and OEM manufacturers, and that will put downward pressure on prices.

Market forces are inescapable. Let's see how this plays out.
 
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They probably tried. It might cost closer for them to $400-500 to build the MacBook Neo due to the RAM and storage cost. The Macs are still the smallest footprint of sales of Apple compared to the iPhone and iPad.

32GB of DDR5 RAM for my gaming PC upgrade is about $500. My 2TB SSD I got in 2023 was $140, now it costs $479 on Amazon. It’s hitting everything. Doesn’t matter if it’s a “gob,” every component tied to RAM and storage has shot up in price due to the AI data center demand, these manufacturers are dictating their prices to all companies. They’re basically saying we don’t care about the normal consumers, we want Amazon, OpenAI, Google and those companies instead.
Most burstable bubble I’ve seen in my life. All this data center capacity is going to end up aboard the local devices anyway as models rapidly mature and optimize, and those idle data centers will be the abandoned, decaying factories of tomorrow. Computers used to take up an entire room. Now they fit on our wrist. This ends the same way.
 
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That is why Apple did not increase the iPhone line. That is main stream and people will notice. In September when the new iPhones come out, they will be $200 to $300 hundred more. That is when people will notice. This is Apple throwing the can down the road.

Well. Apple said iPhone increases are coming. I won’t be surprised if the do it this week.
 
Listening to Jason Snell's review of the May Apple Financial call, Tim and CFO Kevan Parekh noted that their current "favorable" memory contracts were ending in early 2026 and that from June onwards they expected their memory costs to rise substantially (this is probably referring to reports that Apple has signed memory contracts at double the previous price in order to ensure they have enough supply for the iPhone 18).

So makes sense that Apple is now adjusting the prices to reflect those future contracts. Product they are making today have RAM that is twice as expensive as what they were paying for product they were manufacturing at the start of the year.
 
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