Tech giants hike prices as chip shortages and AI demand squeeze profits

Major tech companies are preparing to raise prices for their products due to rising costs and supply chain pressures. Nintendo, Apple, and Nothing have all announced or signalled increases, with some already in effect. The changes stem from a global chip shortage and surging demand for AI-related hardware. Sony has already adjusted prices for its PlayStation 5 models several times. Now, Nintendo plans to follow suit, with price hikes set to begin in September 2026.

Apple has tried to absorb rising costs but recently called the situation 'unsustainable'. The company has already increased prices for the Mac Mini and MacBook Air. CEO Tim Cook confirmed further rises are coming, including a potential $270 increase for the iPhone 18 Pro to protect profits. Reports also suggest Apple will not release a lower-spec iPhone to cut costs.

Memory manufacturers are focusing on data-centre clients over consumer devices. This shift has tightened supplies and pushed costs higher. The broader 'chip crisis' and growing demand for AI applications are driving the need for price adjustments.

Nothing’s leadership has also acknowledged the pressure. Co-founder Akis Evangelidis and CEO Carl Pei stated that their product prices would rise as a result. Consumers can expect higher prices across gaming consoles, smartphones, and other electronics. The increases reflect ongoing supply constraints and the need for companies to maintain profitability. Multiple brands have confirmed the changes will take effect in the coming months.