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The Morning After: Prices rocket up on Xboxes, MacBooks, iPads and more

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Why This Matters

The recent surge in consumer tech prices driven by rising memory costs and increased demand for data centers highlights the ongoing impact of the AI boom on the industry. Major companies like Microsoft and Apple are passing these costs onto consumers, affecting a wide range of products from gaming consoles to laptops and smart devices. This trend underscores the importance for consumers to consider alternative purchasing options and stay informed about market shifts.

Key Takeaways

As we were warned, that pesky AI boom and the resulting demand for memory-hungry data centers are hitting consumer tech. And it's hitting it hard.

Microsoft and Apple were the bringers of ill tidings and price rises. First up, Xbox Series X and S price jumps – one editor noted that his Series X and Series S, bought together, now cost $100 less than a Series X console. Also, this wasn't the first price increase, or even the second, for a gaming company struggling against PlayStation.

Microsoft also announced its new Surface laptops cost between $500 and $600 more than the models they're meant to replace. It's all a bit rich coming from Microsoft, too, one of the major investors in AI.

Then there's Apple, which has claimed it absorbed the costs of rising memory prices in recent years, but that's no longer the case. Punishingly, that includes a $100 bump to its new low-cost MacBook Neo. The increase scales with the machine's power, with the M3 Ultra Mac Studio going up by $1,300.

So far, there are no changes to iPhone prices, but the Apple TV 4K is now $199, up from $129, and the HomePod is $50 more expensive at $349. The Vision Pro headset now costs $3,699, up from $3,499.

If you were looking to get a new laptop, it might be wise to take another look at Prime Day deals. Or take a closer look at the refurb and pre-owned market.

— Mat Smith