‘Biggest price jump I’ve ever seen’: Elon Musk on Apple increasing prices of MacBooks and iPads

The tech industry is grappling with a myriad of challenges, including tariffs, supply chain issues, and geopolitical tensions. However, a more insidious factor is emerging—the explosive growth of artificial intelligence (AI) is significantly impacting the prices of consumer electronics. Devices such as smartphones, laptops, and tablets are witnessing sharp price increases. On June 25, Apple announced a staggering price rise for several of its products, including MacBooks and iPads, with increases reaching as high as ₹1,00,000. The company has attributed this surge to the escalating demands placed on the consumer electronics sector. Apple stated, "The consumer electronics industry is facing an unprecedented challenge. The rapid expansion of AI data centres has created an extraordinary surge in demand for memory and storage. We have never seen a component price increase this much, this quickly." In a parallel move, Microsoft has also increased the prices of its Xbox consoles by $150, citing a dramatic rise in the costs of console storage and memory—up more than 2.5 times in some cases. The company anticipates that prices could double again by the fall of 2027. Apple’s CEO, Tim Cook, expressed in an interview with the Wall Street Journal that these price hikes are unlike any he has encountered in over 40 years in the industry. SpaceX CEO Elon Musk echoed this sentiment, referring to it as the “biggest price jump in anything I’ve ever seen.” A recent report from the Wall Street Journal highlights that prices for computer software and accessories have surged by 15%, underscoring the growing demand driven by AI and data centres. This AI-driven expansion is triggering what experts are calling a “third wave” of inflation, with projections indicating that AI companies could invest around $8 trillion in infrastructure by 2032. This has led to widespread price increases in memory and storage chips, crucial components in consumer electronics. Brands including Nintendo, Microsoft, and Sony are also raising their prices, with Apple products experiencing some of the steepest hikes. As the year progresses, consumers may face even higher costs for electronic devices, making it an increasingly challenging market for buyers.