Apple hikes Mac Mini starting price to $799 amid AI-driven supply shortages

(SeaPRwire) –   Apple Inc. has increased the entry price of its Mac mini desktop computer to $799, up from $599, in response to inventory shortfalls caused by high demand for artificial intelligence applications and constrained processor supplies.

This price adjustment is achieved by discontinuing the most affordable configuration, which featured an M4 processor and 256GB of storage. The lineup now begins with a model equipped with the same M4 chip but with 512GB of storage. The starting price for the M4 Pro version remains unchanged at $1,399.

The $599 model was phased out after selling out across most retail channels. Orders for other configurations from Apple’s online store face delivery delays of weeks or months, and physical Apple stores also have limited stock.

Apple CEO Tim Cook stated on Thursday that the shortages are partly linked to the supply of the SoC (system on a chip), the primary processor for the Mac mini.

“The primary constraints were related to the availability of the advanced semiconductor nodes used to manufacture our SoCs,” Cook explained during an earnings call. He also cited significant consumer demand for Mac minis and Mac Studios to power AI tools as a contributing factor.

“These are exceptional platforms for AI, and customer adoption has accelerated beyond our projections, leading to greater-than-expected demand,” Cook said. He also noted that the MacBook Neo, which also has a starting price of $599, is experiencing stronger demand than anticipated.

Read More: Apple Forecast Tops Estimates Even as Mac Shortages Linger

Cook indicated that achieving a balance between supply and demand for the Mac mini and Mac Studio “could take several months.” The discontinuation of the entry-level Mac mini was first reported by Joe Rossignol of MacRumors.

Both computers can be outfitted with sufficient memory to run large language models effectively on the device, reducing the need for cloud computing. In a move to diversify its supply chain away from Asia, Apple plans to commence production of some Mac mini models in Houston later this year. Additionally, Bloomberg News reported that the company is preparing updated Mac Studio models for a release by the end of the year.

This follows a previous round of price increases in March, when Apple raised the starting prices for several MacBook Pro and MacBook Air models. Apple is not alone in this trend, as other tech firms like Meta Platforms Inc. have also recently increased the prices of their hardware.