Reacting to component price increases, Apple CEO Steve Jobs announced a mark-up of up to £100 across its new iMac range during his keynote speech yesterday.

“I have some good news and some good news,” he said, introducing the decision. “We are seeing incredibly huge demand for iMac – so high, we’ve been unable to meet it.”

The decision was taken against an industry-wide backdrop of rising rising component prices, Jobs explained. A three-fold increase in memory prices and a 25 per cent increase in the cost of the 15-inch monitors used in the iMac range contributed to Apple’s decision.

Price increases Prices on the UK Apple Store this morning are: 700MHz CD-RW iMac, £1,249 (up £100); 700MHz Combo drive (CD-RW/DVD player) iMac, £1,399 (up £100); 800MHz Superdrive iMac, £1,649 (up £50). (All prices include VAT.)

These prices take immediate effect. However, the company also promised to meet existing orders at the original price.

Apple said production of the new iMac has reached the point where the company can begin clearing the backlog in demand. Apple has so far shipped 125,000 new iMacs since the model’s launch on January 7 2002, with an additional 5,000 units shipping each day, Jobs said.

The CEO denied that the company has been fulfilling orders through the Apple Store and its US retail outlets in preference to Apple resellers. However, he did reveal that 10 per cent of the iMacs shipped had been sold through the Apple Stores.