AI has the potential to bring us many wonderful things in the future.
Currently, the prices of goods are increasing due to AI.
And Apple showed us just how expensive it is. The company has increased the prices of some Macs and iPads by at least 15%, and attributes the increases directly to the AI boom, particularly data center construction.
“The rapid expansion of AI data centers has led to an unusually rapid increase in demand for memory and storage,” the company said in a statement. “I’ve never seen component prices rise so quickly.”
In the real world, that means Apple’s entry-level MacBook Air now costs $1,299, up from $1,099. The cheapest iPad Air was $599 on Wednesday and is now $749.
Apple predicted a price hike last week when CEO Tim Cook said a price increase was “inevitable.” The company hasn’t increased the price of its new iPhones, but we’ll see what happens when it unveils new models this fall. “There is a need,” Apple said in a statement.[s] “We will begin raising prices on many products,” suggesting that this may not be the only price increase.
Apple’s announcement is important for anyone looking to buy a new computer or tablet. But I think it’s much more meaningful than that. This is the first time a large consumer company has told consumers that prices are going up because of AI.
It feels like an important milestone. That’s because much of the discussion about AI centers on what people think could happen in the future. If you’re an AI optimist, it might help you discover new silver bullets or fuel new industries. If you’re a skeptic, you might worry that it could create new biological weapons or hollow out large swathes of the economy.
But today, in this moment, Apple is saying that AI is making things more expensive.
The idea has been floating around in tech and financial circles for some time, as the push for data centers puts a strain on computer chips. That’s a good thing for some companies, like chipmakers Micron and SK Hynix, but it’s a problem for just about every company that needs chips in their products, which means…many companies.
Many of them are unknown to the general public. Now, many ordinary people, even those who aren’t in the market for a new iPad or MacBook, are going to hear about how AI is making iPads and MacBooks more expensive.
That’s the kind of data point that sticks in your head. And it’s very difficult to remove.
The AI industry has deep pockets and influence. But technology usually succeeds by bringing something new to people or making something significantly cheaper. Now the technology industry says the same things you bought yesterday will cost more today.
It’s hard to argue a way out of it.