00:00Right now we want to take you Apple is holding an event. They're unveiling several new products including a MacBook
00:05Neo that was just announced. Let's get the latest with Bloomberg Tech's Ed Ludlow in San Francisco. And Ed, the
00:10background as we're getting these announcements from Apple is a memory chip bottleneck. How is Apple grappling with this as
00:18they're making these announcements of new products they're putting onto the market?
00:20Well Neo is not a surprise because there were some leaks in the last 24 hours but it's kind of
00:25contrary to that story. They've come out with a base or entry level Mac that uses the highest performance processor
00:32from the iPhone. So it has the 18 chip as opposed to the M5 chip which is across the lineup
00:39of new Macs. What we had been saying going into this before the Neo was announced is that essentially there's
00:45an effective price hike from Apple because across the new range of Macs they've raised
00:50price prices from a range of $100 to $200 and also eliminated the entry level starting point in terms of
00:58storage. So you get higher specification greater storage but at the entry point being a higher price point. And so
01:05very simply like DRAM is like the working memory of chips. NAND is the flash is the storage. And there
01:11is a bottleneck and high pricing on both because the main suppliers and providers of capacity are prioritizing AI data
01:19center. The story has been a
01:20as simple as that. So simultaneously in London, New York and Shanghai they are now giving access to the general
01:27public to these new products but that's the backdrop that they're facing.
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