'Biggest price jump in anything': Elon Musk reacts to Apple's latest price hike

Apple's sweeping price increases across its hardware portfolio have sparked reactions across the technology industry, with Tesla and xAI chief executive Elon Musk weighing in after the company cited an unprecedented surge in memory costs as the reason behind the move.

The revised pricing affects several MacBook, iPad and home entertainment products worldwide, including in India, with some devices now costing up to 42 per cent more than their original launch prices. Apple says the increases have become necessary as the cost of memory and storage components continues to soar amid rising demand from artificial intelligence infrastructure.

Musk reacts to Apple price hike

Responding to the announcement on X, Musk echoed remarks made by Apple CEO Tim Cook about the scale of the component cost increase.

Referring to Cook's comments to The Wall Street Journal, Musk wrote: "Tim Cook, who told The Wall Street Journal that the jump in costs was unlike anything he had seen 'in any area in over 40 years'. Biggest price jump in anything I've ever seen too."

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Apple has attributed the increases to an extraordinary rise in the price of memory chips, which have become one of the most sought-after components as technology companies rapidly expand AI data centres.

In a statement, the company said, "The consumer electronics industry is facing an unprecedented challenge. 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."

Apple added that it had previously absorbed the higher manufacturing costs but had now reached a stage where some of those increases would have to be passed on to customers.

"We have shielded our customers from these increases so far, but 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," the company said.

List of Apple devices witnessing a hike in India

The revised pricing affects a wide range of Apple products sold in India.

The MacBook Air with 512GB storage now starts at Rs 1,37,900, compared with Rs 1,19,900 previously. Apple has also raised the price of the entry-level MacBook Neo to Rs 79,900, up from Rs 69,900. Since its launch, the device has become Rs 20,000 more expensive, representing an increase of roughly 33 per cent.

The company's latest MacBook Air models powered by the M5 chip have also become significantly more expensive. The 13-inch version now starts at Rs 1,49,900, compared with its launch price of Rs 1,19,900, while the 15-inch model has increased from Rs 1,44,900 to Rs 1,79,900.

Among Apple's professional laptops, the 14-inch MacBook Pro with the M5 chip and 16GB of RAM now costs Rs 2,39,900, up from Rs 1,69,900 at launch. The higher-end 14-inch MacBook Pro powered by the M5 Max chip has also seen its price rise by Rs 1 lakh.

Apple has increased iPad prices as well. The 11-inch iPad Air with the M4 chip now starts at Rs 89,900, compared with Rs 64,900, while the iPad Pro with the M5 chip and 256GB of storage has risen from Rs 99,990 to Rs 1,39,900.

The company's home entertainment products have experienced some of the sharpest increases. The Apple TV 4K with 64GB of storage now costs Rs 25,900, up from Rs 14,900, while the 128GB version has increased to Rs 31,900 from Rs 16,900, representing a rise of nearly 89 per cent. Meanwhile, the HomePod is now priced at Rs 44,900, compared with Rs 32,900 previously, while the HomePod mini has increased from Rs 10,900 to Rs 15,900.

The price revisions come as technology companies across the industry contend with rising manufacturing costs linked to the global memory shortage, with AI-driven demand continuing to reshape the economics of consumer electronics.