Apple increases prices for Macs and iPads, blaming a shortage of memory chips

印刷用画面を開く

Posted

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. cite / saɪt / (v.) – to give something as the reason or explanation for an action or decision
    Example:

    My colleague left work early, citing a family emergency.


  2. spike / spaɪk / (n.) – a sudden, large increase in something
    Example:

    The hospital was busy because of the spike in flu cases.


  3. expansion / ɪkˈspæn ʃən / (n.) – the process of becoming larger or growing in size, number, or importance
    Example:

    The city plans to support the expansion of its public transportation system.


  4. shield / ʃild / (v.) – to protect someone or something from harm, danger, or a negative effect
    Example:

    The new policy has shielded small businesses from some extra costs.


  5. tirelessly / ˈtaɪər lɪs li / (adv.) – in a way that is continuous, or without stopping and not getting tired
    Example:

    The volunteers worked tirelessly to help the flood victims.


Article

Read the text below.

Apple announced an increase in prices for Macs and iPads, citing a memory chip shortage brought on by the artificial intelligence boom. The Cupertino, California-based company called the spike in demand an “unprecedented challenge” for the consumer electronics industry.


“The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage. We have never seen a component price increase this much, this quickly,” the company said in a written statement.


The new entry-level MacBook Neo will now cost $699, up from $599. The 512-gigabyte MacBook Air now costs $1,299, up from $1,099. The one-terabyte MacBook Pro is $1,999, up from $1,699.


The 128-gigabyte iPad Air is now $749, up from $599, while the 256-gigabyte iPad Pro Wi-Fi is now $1,199, up from $999.


Analysts expect iPhone prices to rise later this year.


International Data Corporation (IDC) analyst Nabila Popal said the latest price hikes were higher than she had expected, which suggests the iPhone price hikes 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.


Apple said that while it has shielded customers from the component price surges so far, “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.”


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • Analysts expect iPhone prices to rise later this year, possibly by as much as $200 for Pro models. Would you continue to buy Apple products if their prices continue to rise? Why or why not? At what price do you think a smartphone or device is too expensive to buy? Discuss.
  • Apple has increased prices on Macs and iPads after previously shielding customers from rising component costs. Do you think companies should absorb higher costs instead of raising prices? Why or why not? When do you think it becomes acceptable for a company to pass costs to buyers? Discuss.

Discussion B

  • Prices for multiple Apple devices have increased, including entry-level and high-end models. Do you think people will start keeping their devices longer because of higher costs? Why or why not? What makes a technology upgrade “worth it” when prices keep rising? Discuss.
  • An analyst said that “days of $50 price increases are over,” suggesting future price hikes may be larger and more frequent. Do you think rising prices in tech will continue for a long time? Why or why not? Discuss.