Share to ClassroomApple and Xbox Raise Prices Over Chips
Apple says it will raise the prices of its MacBooks and iPads around the world. Some models will cost nearly 20% more. Apple blames the rising cost of the memory and storage chips inside its devices. Soon after, Xbox, which is owned by Microsoft, said it will also raise the price of its game console. This is its second price rise in less than a year. From August, the cheapest model will cost $499, which is $100more than before.
The main reason is AI (artificial intelligence) . Big companies are building many data centres— large buildings full of computers— to run AI. These centres need huge numbers of memory chips, so the chips are now hard to buy. Apple's boss, Tim Cook, said the price rises are unavoidable. Even TSMC, the world's biggest chipmaker, may raise its prices too.
Xbox warned that chip costs have already doubled and could double again by 2027. So prices may rise even more. Experts think other computer and tablet makers will also raise prices or offer fewer discounts. Many people believe Apple's loyal customers will pay the higher prices anyway. In the US, lawmaker Alexandria Ocasio-Cortez wants Congress to control big technology companies more closely.
