I have some choice words for Sam Altman for destroying the personal computing marketplace by cornering the memory market…
I suspect that these price increases will stick around permanently (or at least for a long while).
And I agreed! So… holy shit. I think we're going to see even further price increases across the industry. There already were a ton, but it can always get worse, of course.
Thank you, OpenAI. What would have we done without your attempts at monopolizing destroying the memory market.
Unfortunately, I think regulatory capture is so deep now in most places, one can hardly expect anyone to do anything about it.
The proposed regulation would be that if a single company/industry buying up supply to the point it starts driving significant inflation for such and such goods, they would be severely restricted from doing so going forward.
I can't imagine a margin that large is allowed to exist unchallenged for more than a few years.
I’m surprised that iphones didn’t get a price raise while neo did. Neo seems like a clear market share attempt so that they can upsell on services, I would’ve expected either both of those or neither to get dinged.
Treat yoself Tim Apple!
So yes, inflation on average is nowhere near as high as in RAM prices.
What other things have been getting cheaper in the last ~2 years?
And as it's an average of many things, it's quite easy to change which 'things' it is calculated upon to show whatever number is more convenient politically.
The base model 14" MacBook Pro released in 2021 was $1,999. Today, Apple raised the price of the current base model to, you guessed it, $1,999.
And of course it should go without saying that the current models are substantially better.
Edit: don't know where that $1,299 came from, Apple's announcement says $999: https://www.apple.com/newsroom/2020/11/introducing-the-next-...
That's a 30% increase. Over 5.5 years, that's right about 5% per year.
In other words, we have to protect our billions of cash from burning.
They could keep the prices down, but then again for these C-suites everything should go up, right? Who cares if the market is “ready” for price jumps? Who cares when HDD, memory manufactures prioritize Sam Atmans? Heck, half-made, buggy games now starts at $80 price point.
It’s unfortunately billionaires’ world.
Apple won't get an exclusive deal to buy RAM for far less than the going rate.
I'm sure they're doing everything they can to cut their costs as well. That means even more profit. Lower costs only translates into lower prices if that results in more profit overall.
I priced it out today. The same spec (I think) is $2,000 more expensive.
I wasn’t expecting a jump that big. I can’t justify carrying around an $8,000 laptop.
https://lowendmac.com/1999/power-mac-g4-yikes/
I have a 350MHz model that I purchased used for $40 back in 2009.
I’ve never seen across-the-board price hikes from Apple that were not accompanied with some type of upgrade.
Or are they also sharing the pain with the customer and partially increasing prices only?
The datacenter builders and the big hosted AI models. The person you're replying to even mentions OpenAI by name.
So, Linux won't consume LESS unless you spend your time configuring different stuff.
I can't imagine users want to mess with this instead of buying macs.
https://www.reddit.com/r/brave_browser/comments/1qqyh2z/scro...
M5 Max MacBook Pro: $4,099 (up from $3,599)
M3 Ultra Mac Studio: $5,299 (up from $3,999
How can this be explained with price increases in Ram prices?
Come on Apple, don’t be so greedy. Make money but don’t bleed us.
There is also no option for instalments and bank also refused loan as asset purchase.
Cool.
Just look at what AI (in the form of LLMs) is doing to the rest of the computing industry because of throwing insurmountable levels of debt into data centers instead of researching efficient methods for running 1TN+ parameters language models locally or even to gain the same performance, intelligence equivalent without such large parameters.
It just tells you that AI is at the point where personal computing is going to price out a lot of people if it doesn't get cheaper. Until there are viable efficient methods in running 1TN+ parameter models or a smaller model performing at the equivalent or better than frontier models, we will continue to see more of this in the future.
Is this really the future we wanted?
Did farming implements and looms make food and clothing more expensive and scarce? No, they did the opposite, making both more readily available. So your comment is a disanalogy.
Not really. I said, "The technology itself may be neat."
> AI is in demand and supply has not caught up.
The point is that we're currently suffering the many negative side effects of AI production, some of which I listed. Will there be a utopian future when the negative side effects are all eliminated? Maybe... or maybe not. In any case, it sucks right now, and relief does not appear imminent. Indeed, the Apple price increases are a sign that the component shortages are not just temporary, and even the wealthiest corporation in the world can't ride out the storm.
I think this one paid off for all my other bad timings.
Edit: I paid $6,400 after taxes and the same setup is now at $9,850 before taxes. Whoa!
Do they have a source for RAM that’s insulated from the global market?
But as soon as I heard Cook say they're planning price increases last week, I ran out and bought a 15" M5 Air 24GB/1TB for $1444 at MicroCenter.
The M6 Pro/Max MBP generation is going to be super expensive given the RAM and storage costs, brand new design, OLED, and TSMC N2 node.
All the people running any computer appreciate.
We are truly entering the dark ages of personal computing.
Massive pushback (lagging, accessibility issues, slow) from workers was ignored and many people quit.
$500!! I mean that's not crazy surprising given price increase in the components I'm trying to buy (ram and hard drives, maybe an SSD) but damn. The M6 is probably the next laptop I'll get, I can only hope that component prices have calmed down by the time it's released but I'm not holding my breath.
And if that is not true, perhaps it isn't really a commodity at all.
Absolutely awful timeline where the value of a PC goes up with time.
It would be weird, unfair even, to run a multi-month long sale for students all over the world only to raise prices halfway through
If your country restricted a company from buying too much of a product they need, 10 other competitor companies in other countries would be formed the very next day offering to do the work in their country for a minimal fee.
This is a global market. Supply and demand isn’t going to be cancelled out by politicians in one country trying to squeeze the market.
If you did restrict companies from buying things they need, you would see all future companies in that space incorporated in other countries.
Maybe we need the same now for computer parts, that are now so important for everything in our modern digital society ?
So that feverish investor speculation and shady circular financing deals don't cause sudden 30+% inflation on any technological device.
Reality check: a strategic reserve of modern technology components in volumes needed to impact consumer prices is completely infeasible and illogical.
I’d be fine with the idea of the government maintaining supplies of defense industrial inputs, critical minerals, etc; but as we see with our efforts for rare earths (and even petroleum) you can never stockpile consumer supply levels.
That, and putting Sam Altman in jail for being a lying fraudster.
The question is always: What specific regulation?
Regulation is not the magic silver bullet that some want to make it out to be.
You’re not going to solve a global supply and demand change by regulating companies to not buy too many things. The supply would go to other countries. Companies would open international subsidiaries that built the data centers in other countries. Companies would move to other countries which didn’t try to stop them from buying components on the free market.
You can’t regulate companies into keeping prices down. This is an international market. If you passed a law that said RAM had to be sold for no more than 30% higher than last year’s price, the international memory companies would laugh and stop sending RAM to that country.
> Unfortunately, I think regulatory capture is so deep now in most places, one can hardly expect anyone to do anything about it.
I think you need to broaden your understanding of how the DRAM supply chain works and which countries are involved. You can’t mandate low prices for a global commodity. You can try, but the supply will just disappear for that country.
No regulation would catch 100% of this, nor is it meant to. But it can definitely deal with companies opening international subsidiaries etc. Sanctions can be worked around too, but that's a hassle and so countries/companies/individuals generally try to avoid them at all costs.
Yet the AI labs are speculating on usage, and spending money from investments without clear revenue path.
See: https://www.wheresyoured.at/brokenomics/ for an interesting write-up on the economics of AI.
Meanwhile, component makers will surely be spinning up more capacity, some of them in a foolhardy manner, and if the bubble does burst, 3-6 months later we'll be seeing fire sales on components and component makers going bankrupt (or getting bailouts, if considered of national importance)
Doesn't mean people would legitimately use them enough to warrant such infrastracture demand, if they were priced according to actual costs.
So it's a distorted market.
> Anyone who’s spent any time in New York City knows that when it begins to rain, two things happen immediately: It becomes easier to buy an umbrella and it becomes harder to hail a cab. As soon as the first few drops fall, people appear on the street selling cheap umbrellas, while a lucky few pedestrians occupy all the available cabs.
Even though the elasticity of supply for taxis is less, rain encourages taxis to get on the road, and work longer to serve the spike in demand. With ride sharing apps the pool of supply is even more elastic.
Close down would be a good idea.
Between the dire economy, the oil and materials crisis due to conflict, the trade wars and the tarrifs, why would anyone expect it to be otherwise?
I happened to buy an iPad 2 days ago, dang I got lucky. I thought they’d announce before the iPhone launch but had no idea it would be this soon.
Immense profits have proven a very endurable shield against upstarts for "big tech" so... we'll probably end up watching regulators attempt to dismantle the RAM cartel throughout the 2040s.
> Apple is a fabless manufacturer; production of the chips is outsourced to contract foundries including TSMC and Samsung.
I have three Apple TVs that are ethernet connected and form the backbone of my home's Thread network, but they have <5 apps installed and would do fine with 32gb rather than 128gb. (And in fact, they are all currently 32gb models from the previous generation where those did include ethernet.)
The base 14" M5 launched at $1599 last October and was later raised to $1699, but with higher base specs like a 1TB drive up from 512GB
https://www.apple.com/newsroom/2025/10/apple-unveils-new-14-...
Small tweaks to macro-economic calculations, can turn into a huge divergence very fast. A one degree error in a compass read seems small...but after a thousand miles, your destination is history.
Tis reaching (or reached) a stage where mostly everyone is blind as to where the economy actually is.
Mega private companies now hire stat firms to run such studies in-house, ignoring gov data[1]
[1] https://rsmus.com/insights/economics/the-rise-of-private-lab...
Hey, Infantino was ahead of the curve! For the same price as an English MBP, you can get an American one and see the Three Lions disappoint against Panama!
There are two things that would prevent people from using local models - pricing and regulations. And we're seeing moves from both of those fronts lately.
piinbinary•1h ago
Speaking of which, what's the timeline of the RAM shortage ending? I have no sense for whether it is going to be (for example) 6 months or 3 years.
brandrick•1h ago
justincormack•1h ago
mDyJzDPmBdG•1h ago
revolvingthrow•1h ago
Barring unusual market forces like Taiwan invasion the timeline to ending the acute shortage seems to be mid 2028. The AI still has plenty of money to burn and is the biggest driver, but we’re also shortly before gaming consoles ought to release a new gen (although who knows whether they won’t get delayed for a while). There was even going to be a small upgrade cycle for nerds waiting for 2nm fabbed devices, same as pre-ai datacenters looking for power efficiency. Plenty of pent-up demand, too, as many people simply make do with what they have but will upgrade once the silliness stops.
If you’re looking for ssd/ram prices to go back to the low of 2024/early 2025 it probably won’t happen before China catches up, which will be a while yet. There is some build up of new capcity happening from current manufacturers but it’s significantly less than what the demand increased by.
haunter•1h ago
Eventually supply and demand will get back in a better balance and we will probably see prices rise slower than inflation until adjusted for inflation prices are close to to where they were before but the actual dollar price isn’t likely to go down.
jorvi•47m ago
dwa3592•38m ago
ErneX•30m ago
Anyone making hardware is having a rough time. Like Valve who had to release their new PC at around 40% more expensive than what they originally wanted.