- Apple shares dropped over 5% after announcing price hikes on key products
- Price increases affect MacBook Neo, MacBook Pro, MacBook Air, iPads, and HomePods
- MacBook Neo price rose from $599 to $699; MacBook Air from $1099 to $1299 globally
Shares of Apple Inc. fell over 5% after the company announcing price rise for its flagship iPad, iMac and home devices on Thursday. The company's stock fell as low as 5.3% at 227.67, as against the previous day's low.
The price rises were implemented by the firm to offset the surge in inpust costs caused by a prominent shortage of memory chips and storage.
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The MacBook Neo, MacBook Pro, MacBook Air, iPad Air and iPad Pro will all be seeing prices as evidenced by the price revisions posted to its online retail store. The starting price of the MacBook Neo, its latest laptop, is rising to $699 from $599, while the MacBook Air is increasing to $1,299 from $1,099.
The entry-level 14-inch MacBook Pro is moving to $1,999 from $1,699, while the 11-inch iPad Pro is increasing to $1,199 from $999. The iPad Air, a mid-tier tablet, is now priced at $749, up from $599. The price hikes are global.
The price of the standard HomePod speaker is now $349, up from $299, while the HomePod mini increased from $99 to $129. The Apple TV set-top box increased from $129 to $199. The company did not raise iPhone prices on Thursday.
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An Apple spokesperson told Bloomberg that “the rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage” and that the company has “never seen a component price increase this much, this quickly.”
Apple added that it has “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.” “We know this is not welcome news, and we are working tirelessly to find solutions,” it said.
(With Bloomberg Inputs)
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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