After decades of declining costs, consumer electronics ranging from computers to video game consoles are jumping in price as the artificial intelligence boom drives a global shortage of memory and storage chips.
"The vast majority of the chips are going to the AI buildout and the data center revolution we're seeing," Wedbush Securities ***** yst Dan Ives told CBS News. "That's [fewer] chips for these regular consumer devices. That just further drives up prices."
On Thursday, Apple and Microsoft each said they were hiking prices on core products, including iPads, certain MacBook models and Xbox consoles, as strong demand for chips drives up the cost of electronic device components. Apple could also raise iPhone prices to offset rising manufacturing costs, according to ***** ysts at market researcher International Data Corporation (IDC).
IDC ***** yst Nabila Popal said Apple's price hikes were higher than she had expected. That suggests any iPhone price increases may also be higher than expected, perhaps as much as $200 for the iPhone Pro and Pro Max models.
"I think the days of $50 price increases are over," she said.