Apple announces price hikes on Mac and iPad devices

Driving the news: The company outlined starting price hikes of about 15% to 25% on several devices, including:

• MacBook Neo goes from $599 to $699.
• MacBook Air 512GB from $1,099 to $1,299.
• MacBook Pro 1T from $1,699 to $1,999.
• iPad Air 128GB from $599 to $749.
• iPad Pro Wifi 256GB from $999 to $1,199.

What they're saying: "The consumer electronics industry is facing an unprecedented challenge," Apple said in a statement. "The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage. We have never seen a component price increase this much, this quickly."

• The company added: "We know this is not welcome news, and we are working tirelessly to find solutions."

The intrigue: The iPhone wasn't included in this round of price increases, but Apple hinted that more are on the way.

• "While Apple is well known for using its huge memory and storage purchases as leverage to secure low prices, the current memory price increases have forced Apple's hand to raise prices," Wedbush Securities analyst Dan Ives wrote Thursday in a research note.

What to watch: The price increases underscore why the company reportedly agreed to acquire chips from Intel in a deal promoted last week by President Trump.

• That deal "assists Apple with diversifying its supply chain to reduce this pressure," Ives added.