Apple’s price hikes are a warning to IT
IT purchasing is being hit by a double-whammy: Enterprises want to ensure their hardware is good enough to support AI, even as memory shortages caused by AI deployments are driving steep price increases for Macs, iPhones, iPads, tablets, Android devices and Windows PCs. The root cause is widely known. JP Morgan estimates DRAM prices have risen more than 400% since the beginning of 2024 as data…
The recent surge in memory prices, driven by AI data center construction and hyperscaler demand, has resulted in a 400% increase in DRAM prices since the start of 2024, impacting a wide range of devices such as Macs, iPhones, iPads, tablets, Android devices, and Windows PCs. Analysts predict that the shortage will persist for multiple years, causing further price hikes.
Key companies like Apple, Huawei, Samsung, Google, Motorola, and Xiaomi have all implemented price increases, with Apple raising its hardware prices by around 20% and Huawei and Samsung reporting even higher increases.
The unpredictable nature of these price hikes means that business leaders may not have been aware of the increases, leading to existing budgets that do not reflect the new reality. IT purchasers are now seeking multi-year leasing agreements, bulk purchase deals, and refurbished devices to mitigate the impact of these price hikes.
In the long run, this trend indicates a shift towards longer hardware life cycles, reconditioned markets, and a greater focus on reliability, resale value, and recycling and energy costs. IT purchasers are advised to consider total cost of ownership over time and make informed decisions to manage the uncertainty in IT purchasing.
Written by urgent.news from Computerworld's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
