Apple price hikes signal AI inflation: deVere

Binaya Dahal

Journalist

29 June 2026

Apple’s decision to raise prices on several flagship devices to offset AI-driven chip costs signals the technology is beginning to fuel inflation, says Nigel Green, chief executive of deVere Group.

The world’s most valuable consumer electronics company last week hiked prices on several iPad and MacBook models, saying it could no longer absorb soaring memory and storage chip costs driven by the AI industry’s data centre buildout.

The move does not affect Apple’s main cash cow, the iPhone, but it will lift the starting price of Neo, its entry-level laptop aimed at competing with low-cost Windows and Chromebook devices, from $599 to $699 just months after launch.

“Apple’s decision to raise prices is an early warning that inflation is finding a new route into the economy,” Green said.

“Pricing power is strengthening across the semiconductor industry, and those costs are beginning to flow through to consumers.”

Green said while AI is still expected to enhance productivity and ease inflationary pressures over time, the current investment phase is likely to have the opposite effect.

“Companies are investing hundreds of billions of dollars in AI infrastructure. Data centres are competing with laptops, tablets, and smartphones for the same advanced components,” he said.

“As supply tightens, prices rise and consumers eventually pay more. Inflation doesn’t always begin with oil or wages. Sometimes it starts with success.”

He added that recent inflation data and corporate earnings point to an economy that remains unusually strong, supported by resilient consumer spending and solid labour market conditions.

“Those are not conditions that normally justify lower interest rates,” Green said. “The bigger question today is no longer how soon rates come down, but how long they stay restrictive if inflation refuses to retreat.”

He said inflation above 4%, resilient demand and companies passing on higher costs all raise the question of whether the economy is becoming too hot.

“The Fed’s job is to keep inflation under control, not to support stock market rallies,” Green said.

“If demand continues to exceed supply across critical industries while inflation remains elevated, there will be little pressure on policymakers to loosen monetary policy.”