Apple to raise iPhone, Mac and iPad prices: AI‑driven chip shortage forces 'unavoidable' hike - Gulf News

Apple Inc. plans to raise prices on its products to offset surging memory and storage chip costs, marking a rare move by the tech giant to pass semiconductor supply pressures directly to consumers. Th... Read original →

The AI compute arms race is triggering a new wave of semiconductor inflation, forcing Apple—historically resistant to price hikes—to pass soaring costs directly to consumers. Technologically, while 2nm nodes improve efficiency, EUV complexity and yield constraints push per-device chip costs to $85; meanwhile, AI-driven DRAM/NAND demand starves consumer electronics of supply, creating a distorted market where low-end models face steeper markups. Geopolitically, U.S.-EU export controls and Taiwan, China’s foundry concentration heighten supply chain fragility. Competitively, Samsung may bundle memory dominance with device sales, while Huawei could exploit self-reliant breakthroughs to anchor premium pricing. Over the next 12–24 months, expect structural consolidation: smaller brands exit under cost pressure, while leaders sustain margins via services and high-spec SKUs—permanently resetting consumer electronics’ price floor.