Transcription
Okay, you know that things are bad when you see this. For just shy of an hour, it has just come back online. This time with higher prices across parts of the Mac and iPad lineup. Apple saying in a statement that it needs to begin raising prices on a number of products, which leaves the door open to more increases down the line.
We're all screwed. Big time. And it's not going to stop anytime soon. They call it the worst day in Apple's history because they just dropped so much. And what Apple tried to say about this is that we tried to save our customers from these price hikes, but they can't. So, even Apple could not actually save us from this. So, what exactly has happened? Why did it happen? And what should we actually do?
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What has happened is Apple just raised prices on pretty much all of the products ridiculously. And it's not just, oh, we'll just add a $10 here and $50 there. No, like the Mac Studio went up $1,300. $1,300, you can buy an extra MacBook Air for that. $500 on some of the Mac Studios, Mac Minis $200, $300 MacBook Pro 14-in. Some of the 15-in went up, oh, even $500, which is ridiculous. But, there are some things that are not affected. We can see that iPhone has not been affected, Apple Watch and AirPods and Studio Displays and accessories like Apple Pencil has not been affected yet.
In fact, if you're thinking about buying anything in the next year until 2027, here's my sincere advice to you. If you can live without the products, just okay, don't buy it. But, if you're thinking about upgrading in the next 2 years, by the end of 2027, buy something right now. There's Amazon Prime Day available. For example, the upper AirPods Max 2, go check out my video. Basically, I found some deals that are on right now, and this is not the point of this video. But, if you're asking for some advice, there are some things right now. But, it's not looking good. Black Friday this year is going to be so screwed. There's going to be no deals in Black Friday. I'm calling this now.
So, you might be there and thinking, why has Apple just raised all the prices so much? What is going on? Well, there is this thing called AI that not a lot of people actually like. Well, this video probably does not change your mind, in fact, confirms your findings. So, there's something that AI needs, which is a lot of computing power. And in order to have a lot of computing power, they need fast memory or random access memory or VRAM in a lot of the GPUs. And because there's only three memory manufacturers in the world, Samsung, SK Hynix, and Micron, they are absolutely at full capacity. There's no other manufacturers in the world. Yes, there's some new ones coming from China and things like that, but they're very, very small bit in the market. The main market is by these three in the western world. All the chips that we see in our TVs, phones, laptops, computers, everything comes from these three manufacturers. And because the AI has pretty much unlimited or unconsolable appetite for RAM, the AI company leaders is just trying to hoard the RAM as much as possible, which just leaves up how to drive and has hiked the memory prices so much. They're saying that in Q1 2026, some of the memory pricing has gone up by 98%. That's absolutely ridiculous. Tim Cook himself says that he has not seen something like that in the 40 years he has been in the industry. This is something that no one has really ever seen before.
Now, because the AI is demanding so much of this hardware, what happens is most of the AI manufacturers shift their manufacturing process from just the consumer RAM that we put into our Macs or MacBook Pros or iPhones to the high memory bandwidth or HBM memory, which just is a lot more expensive, uses the same tooling, but you can sell it more expensive, which means that they can just make more money. And if you see their stocks, their stocks go up. But us consumers result to much higher pricing of everything. So, in very simple terms, because AI constantly needs more computing power, all the hardware goes to there. In fact, there are some rumors that Sam Altman and some of the other guys have said to the memory factures that I'll just get everything that you have for the next couple of years because they have insane demand for it.
Now, I have spoken to some of these people behind the scenes and I'm not allowed to say which company because I don't want those people to get in trouble, but there are some big Windows laptop manufacturers that are really, really struggling because the memory manufacturers that give them usually memory, you know, Kingston, Samsung, SK Hynix, Crucial, wherever they get their RAM chips because they have to put them inside their laptops, they're just struggling and it has been going on for quite a while and it might actually get worse.
Now, when we were at Computex, I wanted to kind of gather if this is real or if this is not real and I was trying to talk to like some of these brands that I know and all these booths in there and I found out that there's a lot of companies struggling to stay afloat just because the way the industry is. The PC industry or DIY industry is just kind of gone into a halt because just everything is so expensive. The SSDs, storage, that's affected exactly the same way. You might look something on Amazon that looks on a deal that is the cheapest it's been in the last 8 months, but it's still double the price that it was kind of 12 months ago, which is again crazy. But, that has an effect on some of the lower end PC markets as well, like PC cases, cooling and things like that because if people aren't building new PCs or buying pre-built PCs, then there's no need for the accessories to be there either, which is very, very weird and the actual show was taken up quite a lot by some industrial, even though it's supposed to be like a consumer show of electronics. It was really just more and more like some industrial things. I was talking to some of the brands and they were like, "Oh, no, we're just a distributor to a big like industrial B2B. Like we don't really want to talk to you." And I was like, "Whoa, that has shifted quite a bit because it used to be full of tiny little PC manufacturers."
Going back to Apple then, everything on Apple has gone up. And the experts are predicting that this is not going to go down anytime soon because of two reasons. Number one, the memory production is still delayed. And this is not going to be solved anytime soon. You think, "Why don't we make more factories to make it quicker and faster?" Well, actually making those factories actually takes couple of years to make. So, by the time you've made the factory, we're already in a different environment and different season. But also, they are making the new factories because the demand is rising, but it just takes so long. And secondly, even if the demand is going to shift, do you think the companies are really going to change the pricing if you as a consumer are already used to the newer, higher pricing? I don't think so because why lower the pricing if we can make more profit at a higher price point?
Apple has kept the pricing the same for years now. And this is a very good excuse to actually raise the prices and keep them there because Apple for the last 12 to 24 months has been not just a best performance option, but also best price to performance option compared to Windows. But now Apple shifted themselves again into that premium tier of, "Look, we can't actually keep those prices the same." Now, is this true? Well, that's what they are saying to us. But is it really true? I don't know, but it seems like that is where the industry goes. Do you think Apple's honest about this or do they just want to maximize profit as well? Because the stocks will go down, but once the Q3 Q4 reports of revenue come out, the stocks are going to go back up. So, what do you think is going to happen?
So, finally then, what should we do and how long is this going to last? Like I mentioned, it's probably going to last in the next couple of years, but what you can do right now is check out the deals and something that is old stock. If you want the latest and greatest, I think Amazon Prime Day has right now, when you're watching this, it should be still on, some of the deals on. But, if you're looking at just the last model, like maybe M4 models, then you can find some deals out there and banking on the older models is a great idea because you'll find the best bang for buck in there. Again, if you don't need it, don't rush to go buy new products because that's going to save you a ton of money.
Another tip here is to consider refurbished. If you go buy Apple's refurbished, you can get insane discounts, but still have the same type of warranty as a new product. So, you might get a used or refurbished latest model, like the M5 Pro, M5 Max, or whatever, but still at a massive discount. Another tip I have here is when you're upgrading your Mac or Mac Mini or whatever device on Apple's website, just make sure that it is actually worth it because the upgrades are absolutely ridiculous. If you go with the base model, for example, going to Amazon, links in the description below, you can find it cheaper than on Apple's website. So, right now, I would really avoid Apple's website if you can't, just because you'll get ripped off in there.
This is it. I'd love to know what you think and how you're seeing this and how you would actually explain this. I'm going to meet you in the comment section below. I can't wait to see what you guys have to say. Thanks very much, guys, for watching. I appreciate you all, and I'll see you in the next video. Bye-bye.