Morning Business Report: Apple, Microsoft Hike Prices Amid Rising Inflation
Apple raised prices on select Macs and iPads Thursday, with increases ranging from $100 to $200.
(LILAMAX)- Consumers could soon pay more for some of their favorite technology products.
Apple raised prices on select Macs and iPads Thursday, with increases ranging from $100 to $200. The move comes one week after CEO Tim Cook warned that rising memory and storage chip costs would likely force the company to increase prices. Microsoft also announced a $100 price increase for Xbox consoles, citing the same higher component costs.
The announcements come as inflation continues to accelerate. The Core Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge, rose to its highest level since October 2023 and increased at its fastest pace since April 2023. The latest data is expected to reduce the likelihood of a near-term interest rate cut.
Wall Street also ended lower. The Nasdaq fell for a fourth straight session as investors weighed Apple’s price hikes despite stronger-than-expected earnings from Micron.
Meanwhile, Ford topped Toyota, Lexus and Honda in the latest J.D. Power Initial Quality Study, which measures customer satisfaction during the first 90 days of vehicle ownership. Overall vehicle quality posted its biggest improvement since 1997, although touchscreen connectivity remained one of the most common complaints. J.D. Power also noted that improved cupholder designs contributed to higher owner satisfaction.
A new report also found that earning a bachelor’s degree continues to provide a strong financial return. According to the Postsecondary Commission, the typical bachelor’s degree delivers nearly $87,000 in additional earnings during the first 15 years after enrollment. Engineering and architecture degrees produced the highest returns among all majors.
