Apple hikes Mac and iPad prices amid soaring chip costs

Apple on Thursday said it is raising prices on MacBooks and iPads, blaming AI-driven demand for memory and storage that has sharply increased component costs. "We have never seen a component price increase this much, this quickly," the company said in a statement shared with CBS News. "We have shielded our customers from these increases so far, but we have now reached a point where we need to begin raising prices on a number of products, including today's increases for iPad and Mac." The price hikes are impacting multiple Apple products, according to The Verge. The MacBook Neo, which Apple introduced earlier this year to appeal to budget-conscious customers at a starting price of $599, has increased to $699. Other changes include: MacBook Air 512GB: Now $1,299, up from $1,099 MacBook Pro 1T: Now $1,999, up from $1699 iPad Air 128GB: Now $749, up from $599 The price hikes don't include the iPhone, Apple's core product, according to Reuters. "If consumers are psychologically prepared for higher prices, it won't impact sales," Nabila Popal, senior director of data and analytics at International Data Corporation, a market intelligence and advisory firm, told CBS News in an email. Apple shares tumbled after the company's announcement, falling $16.49, or 5.6%, to $276.68, in midafternoon trading. AI boom drives up chip costs The rapid expansion of AI data centers has heightened demand for computing power, exacerbating a chip shortage. …