Apple Inc. has raised the starting price of its Mac mini desktop to $799 from $599, a move attributed to inventory shortages driven by demand for artificial intelligence (AI) applications and a constrained supply of processors. The company has effectively increased the entry price by discontinuing the lowest-tier configuration, which featured an M4 processor and 256 gigabytes of storage. The revised model now starts with the same chip but includes 512 gigabytes of space.
The $1,399 starting price for the M4 Pro model remains unchanged. The decision to eliminate the $599 option follows reports of its rapid sell-out across most retail outlets. Several other configurations of the Mac mini still face delays of weeks or even months for delivery from Apple’s online store, and they have been in limited supply at the company’s physical locations.
On a recent earnings call, Apple Chief Executive Officer Tim Cook attributed the shortages partly to the constraints surrounding the advanced nodes on which the SoC—or system on a chip—is produced. “The constraints were primarily driven by the availability of the advanced nodes our SoCs are produced on,” he stated. He also noted that consumer demand for the Mac mini and Mac Studio has surged as these machines are increasingly recognized as effective platforms for running AI applications.
“These are amazing platforms for AI and agentic tools, and the customer recognition of that is happening faster than what we had predicted, so we saw higher than expected demand,” Cook said. He also pointed out that the MacBook Neo, which also starts at $599, is experiencing stronger-than-anticipated interest.
Cook indicated that it “may take several months to reach supply-demand balance” for both the Mac mini and Mac Studio. The discontinuation of the entry-level Mac mini was first reported by MacRumors’ Joe Rossignol.
Both the Mac mini and Mac Studio can be configured with sufficient memory to effectively run large language models locally, reducing reliance on cloud computing. Apple is planning to begin production of some Mac mini models in Houston later this year, marking a shift away from its traditional manufacturing base in Asia. The company is also preparing updated versions of the Mac Studio for release later in the year, according to Bloomberg News.
This price increase marks a continuation of a trend that began earlier in the year, when Apple raised prices on several of its MacBook Pro and MacBook Air models. Apple is not the only technology company adjusting prices; competitors like Meta Platforms Inc. have also increased costs for their devices in response to market dynamics.
As AI continues to evolve and drive demand for powerful computing solutions, Apple’s adjustments reflect a broader industry trend. The company’s strategic shifts in production and pricing may provide a crucial advantage as it navigates ongoing supply chain challenges and increasing consumer interest in AI technologies.
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