Apple stock plunges after raising prices on MacBooks, iPads amid global memory crisis
The global memory shortage has finally come for Apple (AAPL). The company on Thursday raised the prices of its MacBooks and iPads in an effort to offset the impact of skyrocketing memory and storage prices.
Apple, however, did not increase the cost of its all-important iPhone.
Shares of the tech giant closed down more than 6% following the announcement.
Apple raised the price of its entry-level MacBook Neo from $599 to $699, while the MacBook Air jumped from $1,099 to $1,299. The Neo’s biggest selling point is its low price, making even a $100 increase a potential problem for Apple’s latest laptop.
The company’s MacBook Pro 14-inch also rose from $1,699 to $1,999, while the 16-inch model increased from $2,699 to $2,999.
The price of the 11-inch iPad Air also went up from $599 to $749. The 13-inch version is now $949, up from $799. You’ll have to pony up more for the iPad Pro as well. The cost of an 11-inch iPad Pro is now $1,199, versus its launch price of $999, and the 13-inch is up to $1,499 from $1,299.
Apple has been telegraphing in recent months that it would have to raise the prices of at least some of its products. During the company’s earnings call in May, CEO Tim Cook noted that Apple is facing increased margin pressure due to spiking memory and storage prices.
In an interview with the Wall Street Journal, Cook said price increases were “unavoidable.”
Apple is far from the only company dealing with the ongoing fallout from the memory shortage. Microsoft (MSFT) and other PC makers, as well as some smartphone makers, have had to raise prices on their laptops and desktops.
Video game console makers Nintendo (NTDOY), Microsoft, and Sony (SONY) have also begun charging more for their systems, pushing prices well above their initial launch prices.
Analysts anticipate that higher costs will lead to demand destruction as consumers steer clear of expensive purchases.
Analysts aren’t anticipating the shortage to ease anytime soon, either, with some estimating it could last several more years.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.
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