Hope you weren't planning on buying a reasonably priced laptop anytime soon, because your tech overlords at Apple and Microsoft have decided you need to pay a heavy toll for the global AI hype train. Citing a sudden, convenient "AI-driven cost crunch" for computer parts, Apple has hiked its hardware prices in Australia by 20% or more. If you wanted a cheap device to scroll social media, you are officially out of luck—unless you want to pay a premium to subsidize massive datacenter energy bills.

Let's look at the absolute state of these new Australian prices. The entry-level iPad, which used to be a somewhat accessible $599, has jumped by a massive 25% to start at $749. The iPad mini is up to $949 from $799, the iPad Air has climbed from $999 to $1,249, and the premium iPad Pro is now a whopping $1,999, up from $1,699. This is the reality of the "future of computing"—getting charged more money for the exact same physical form factor.

Over in the laptop department, the premium markup is even wilder. The MacBook Air 13-inch now starts at $2,099, up from $1,799, and the MacBook Pro 14-inch will set you back at least $3,199. Crucially, Apple has completely eliminated the sub-$1,000 laptop from its digital storefront. Even the MacBook Neo, which launched just three months ago in March for $899 as Apple's "most affordable laptop ever," has been hiked to $1,049. So much for that short-lived marketing promise.

Desktop users are also getting hit, with the iMac starting at $2,399 and the Mac Studio reaching a ridiculous $4,299. The only silver lining right now is that local retail stores like JB Hi-Fi and Officeworks are currently holding the line, using older inventory to offer realistic deals. JB Hi-Fi was actively promoting a MacBook Air 13-inch for $1,597, a MacBook Pro 14-inch for $2,797, and the base iPad for $495. But once that stock is gone, expect those prices to shoot up.

We all knew this storm was coming. Back in February, JB Hi-Fi Chief Executive Nick Wells warned analysts that the corporate obsession with expanding computing power and generative AI was driving up chip costs. Wells predicted a 20% price hike for PCs and warned that phones would be next. For now, the iPhone 17 Pro still starts at $1,999 and the Pro Max at $2,199 on Apple’s site, but Wells predicted iPhones will get hit from September when the iPhone 18 is released.

Apple, of course, played the victim card, claiming they "absorbed" rising costs for as long as possible before being forced to raise prices. "We have never seen a component price increase this much, this quickly," they whined. Wall Street wasn't buying the sob story, though. Apple’s stock price plummeted 6.15% on Thursday US time, wiping out a casual US$250 billion in market value to close at US$4.04 trillion. It turns out investors don't love it when your supply chain is in shambles.