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.

The supply crunch is also triggering a broader "hardware component crisis" across the gaming sector, with CBC noting Microsoft's announcement on Thursday that Xbox console prices per unit will jump by $100 to $150 in the US, marking its second major price hike in less than a year.

Additionally, Valve launched its highly anticipated Steam Machine at a steep $1,919 for the two-terabyte model, pointing to the global RAM shortage for launching the console at a higher price than it expected.

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