Tech firms are blaming AI for mega device and console price rises
Summary
Tech companies like Apple and Microsoft have increased prices on older devices and game consoles. They say this is because the cost of key parts, especially memory chips, has risen due to high demand from AI data centers.Key Facts
- Apple raised prices on its tablets and laptops by nearly 20%.
- Microsoft is increasing Xbox Series S and X console prices by at least $100 starting in August.
- This Xbox price rise is the third time in just over a year, making consoles 30% to 40% more expensive than last year.
- The price of random access memory (RAM), a key computer part, has more than doubled recently.
- AI data centers need many chips to process large AI tasks, increasing chip demand and prices.
- Other companies like Nintendo and Valve are also raising prices on gaming devices due to higher component costs.
- Apple's share price dropped after announcing price hikes, and analysts say premium phone makers are better able to handle these supply challenges.
- The building of large AI data centers by companies is driving much of the increased demand for chips and memory.
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