Apple and Microsoft hike device prices as AI infrastructure monopolizes chip supply

Apple and Microsoft have raised prices across their hardware lineups, citing an unprecedented global shortage of memory and storage chips driven by the artificial intelligence boom. On Thursday, Apple increased the price of its entry-level MacBook Neo by $150, bringing the starting price to $949 in Canada, while also raising prices for iPads, HomePods, and Apple TV devices.

In a statement to CBC, Apple warned that the consumer electronics industry is facing an "unprecedented challenge," noting the company has never seen component costs rise this quickly. The price surge stems from major chipmakers like Samsung and Micron shifting production capacity away from consumer electronics to prioritize high-margin AI orders for companies like Nvidia.

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Apple plans to raise prices due to rising chip costs

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The artificial intelligence boom is forcing Apple to raise its product prices. Tim Cook, Apple's outgoing chief executive officer, confirmed to the Wall Street Journal that price increases were "unavoidable" as surging memory chip prices and the situation around them have become "unsustainable."

Cook did not specify the timeframe of the price hikes, but the company is expected to launch its newest version of the iPhone in September. Memory chips are considered essential components of devices like smartphones, but the increased demand for AI-related infrastructure and products has driven their prices higher. This effect is compounded by the ongoing geopolitical uncertainty in the Middle East. 

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Apple said to be developing camera-equipped AirPods for 2027

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Apple is reportedly planning to add cameras to AirPods slated for release in late 2027, Bloomberg's Mark Gurman reported, citing people familiar with the tech company's plans. These cameras aren't intended for taking photos or recording videos. Instead, they are meant to serve as AI sensors, offering Siri visual context of your environment and allowing the assistant to answer your queries, like what to make for dinner based on the ingredients you have out. These camera-equipped AirPods are expected to look similar to the AirPods Pro, with the report noting that the device will have external lights to indicate when data is sent to the cloud for processing.

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Snap debuts new Specs AR glasses

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Snap takes another stab at augmented reality glasses and pairs them with artificial intelligence this time. Snapchat's owner describes the Specs AR glasses as a wearable computer, with the device running on two Snapdragon processors. One is dedicated to computer vision and another powers the device itself. The glasses do not require an input device as they rely on hand tracking instead.

The Specs come with a liquid crystal on silicon display, with a 51-degree field of view and 16 million colours, translating to a 24-inch desktop monitor when working or a 115-inch home cinema screen placed 10 feet away. This means use cases can range from work to play, with the promise of hands-free app use.

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