Apple CEO Tim Cook warns AI-driven price increases are unavoidable
4 days ago by sanitation to c/technology
Heaven forbid their margins be lowered. 46% is barely scraping by!
AI isn't driving up prices. Oligarchs are. And they aren't using their own money but our retirement funds to do it.
Ai is just a tool. One that is being built out because the billionaires demand it. They are already wielding this tool to bludgeon the masses.
The AI-driven price increases:
It’s everything with any memory or processing onboard.
I’m seeing it in my industry, devices are increasing in price every quarter to 6 months. These all cost businesses more money than even a year ago, and those costs will be passed to us.
It’s easy to call Apple out, but understand that any device in your house with any memory from robot vacuums to home surveillance cameras to routers are all affected by this drain of chips and components.
We're also facing a shortage of the materials for PCBs.
Alongside the existing helium shortage, we're going to see higher prices for every part of a computer, even without the chatbot hype buying.
Demand for electricity will raise electricity prices, and demand for gas to run the electricity plants will raise heating costs.
Demand for RAM makes the price of even Rapsberry Pi go up. The AI bubble is the tail wagging the economy dog.
Maybe a little, but the rise in the costs of AI will make a huge number of people to stop using it since it’s not that life changing, bringing the prices down again.
The price increases will trickle to you in some form
Can't someone come up with alternatives to ios and android. They got so skummy
if youre from europe you could give jolla (sailfishos) a shot. another alternative would be volla (ubuntu touch). no idea if they sell globally tho.
keep in mind that both operating systems are not widely adopted and you may have issues with banking apps or government id-apps. but theyre the best bet to get out from big tech without using a dumb phone.
Thank God AI is so powerful that we would live in a post-scarcity world! AI is so productive that labor is basically free. Thus making products basically free.
If apple had a 1tb Mac studio, it'd sell so goddamn fast due to being able to run some of the largest open LLMs out there. I've been using GLM 5.2 and it's damn near opus 5.6, the first model I thought was good enough to just write code without intense guidance. 1tb is well within the range where you could run the model on your own hardware. The higher prices are there to head off the deserved intense demand
Work bought me three 512gb Mac Studio M3 Ultras (one for my desktop and two for my lab). I run exo on two of them and can dang near run any model I want if I can find one that runs on the hardware (DeepSeek-v4-flash has been problematic so far). I’m so glad I got them before the prices skyrocketed. Hell I think they even stopped making the 512gb version completely.
Interesting how it's driving up hardware costs and driving down software costs
Why do you think it's driving down software costs?
I can see it's driving down costs, I work in industry. Lots of competitors have popped up with AI apps with lower prices. There's a reason it's called the SaaS apocalypse
Well as a person who is working as a software developer I wouldn't be so hasty.
You can write more code, but that has never been a real bottleneck. Understanding and maintenance of this code is another matter altogether.
Add to that the price of AI subscriptions are currently heavily subsidized by venture capital and even with the subsidies tokens turn out to be more expensive than people.
Also no one is calling it SaaS apocalypse.
https://www.risingtrends.co/...
It is very much being called the SaaS apocalypse...
Where are AI subscriptions subsidised for enterprise use? Github copilot was the last to drop the subsidised model for big business at the start of the month as far as I can tell. Only individuals and very small businesses are getting subsidised subscriptions now, and it's still super economical and cost efficient to use even frontier models at API billing rates compared to humans. A human can work all day on debugging a software defect, or Opus can find the root cause in ten minutes for $20. Sure that still needs reviewing but that's insane productivity AND cost improvement
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