Apple Inc. raised the starting price of its Mac mini desktop to $799 from $599, adjusting to inventory shortages driven by AI demand and the tight supply of processors.  The company is effectively increasing the price by removing the entry-level configuration, a model that includes an M4 process or and 256 gigabytes of storage. The computer now starts with that same chip and 512 gigabytes of space. The $1,399 starting price of the M4 Pro model hasn’t changed.  The discontinuation of the $599 tier comes after that model sold out at most outlets. Other configurations still take weeks or months to arrive from Apple’s online store and have been in limited supply at the company’s retail stores.  On Thursday, Apple Chief Executive Officer Tim Cook said the shortages were tied in part to the so-called SoC, or system on a chip, the processor that serves as the brains of the Mac mini.  “The constraints were primarily driven by the availability of the advanced nodes our SoCs are produced on,” he said on an earnings call with analysts. The other factor is that consumers have been snapping up Mac minis and Mac Studios to run artificial intelligence, he said.  “These are amazing platforms for AI and agentic tools, and the customer recognition of that is happening faster than what we had predicted, and so we saw higher than expected demand,” Cook said. He added that the MacBook Neo, which also starts at $599, is seeing stronger-than-anticipated demand.  Read More: Apple Forecast Tops Estimates Even as Mac Shortages Linger Cook said that it “may take several months to reach supply-demand balance” for the Mac mini and Mac Studio. MacRumors’ Joe Rossignol first noted that the entry Mac mini had been discontinued.  Both machines can be configured with enough memory to capably run large language models locally, with less reliance on the cloud. Apple is planning to begin producing some Mac mini models in Houston later this year in a shift away from Asia. It has also been preparing updated Mac Studios for the end of the year, Bloomberg News reported. Apple increased prices on some other Macs in March, raising the starting prices of several MacBook Pro and MacBook Air models. Apple is not the only company raising prices, with other companies like Meta Platforms Inc. recently upping the cost of their devices.  This story was originally featured on Fortune.com ...read more read less