Apple Lobbies for Clearance to Buy Memory Chips from ChangXin
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Newsfilter
- Lobbying Efforts: Apple is lobbying the Trump administration for clearance to purchase memory chips from ChangXin Memory Technologies (CXMT), aiming to alleviate financial pressure from rising chip prices, highlighting the dilemma faced by major U.S. tech firms under national security restrictions.
- Price Increase Impact: On Thursday, Apple raised iPad and MacBook prices, indicating it can no longer shield customers from soaring memory and storage chip costs driven by the AI industry's data center expansion, reflecting the broader market challenges.
- Regulatory Challenges: CXMT has been designated as a Chinese military company by the Defense Department, and was approved for addition to the Commerce Department's Entity List last year, meaning U.S. companies cannot ship goods, software, or technology to it without a license, which is likely to be denied.
- Engagement with Officials: Apple approached the Commerce Department over a month ago and engaged with other administration officials and allies in Washington, demonstrating its proactive efforts to seek a resolution to the supply chain issues it faces.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 275.150
Low
239.00
Averages
306.89
High
350.00
Current: 275.150
Low
239.00
Averages
306.89
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, Wearables, Home and Accessories. Its services include advertising, AppleCare, cloud services, digital content, and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its wearables include smartwatches, wireless headphones, and spatial computers. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Price Hike Impact: Apple's recent price increases of 15% to 25% for Mac, iPad, and accessories aim to counter record-high memory cost inflation, thereby protecting gross margins, although analysts generally believe demand will remain stable.
- Market Performance Analysis: Apple stock is projected to end the week down 7.5%, marking its worst weekly decline since February, despite a nearly 1% gain on Friday, indicating investor concerns over falling demand versus margin protection.
- Analyst Perspectives: Morgan Stanley highlighted that Apple's price adjustments are focused on defending gross margins rather than merely offsetting cost increases, noting that such significant price hikes have not been seen in the last 15 years, showcasing Apple's strong market control.
- Investor Sentiment: According to Stocktwits data, retail sentiment around Apple trended bullish, with users suggesting brand loyalty will lead consumers to pay higher prices, reflecting a decrease in price elasticity, as the stock has risen 39% over the past 12 months.
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- Price Increase Strategy: Apple raised prices on its iPads and Macs by 15% to 25% on Thursday, and while there are concerns about demand impacts, Morgan Stanley analysts believe this move is primarily aimed at protecting gross margins rather than just revenue growth.
- Gross Margin Protection: Analyst Erik Woodring from Morgan Stanley noted that Apple's gross margins typically exceed 40%, and the scale of the price increases reflects the company's strategic focus on maintaining profitability amid memory shortages.
- Demand Elasticity Analysis: Woodring suggests that Apple's demand has historically shown relative inelasticity, and the reliance on its ecosystem may insulate it from significant sales impacts, potentially driving upside in revenue and earnings.
- Consumer Financing Options: The financing options Apple offers, along with its higher-income consumer base, may further mitigate demand destruction risks; Woodring pointed out that assuming a four-year replacement cycle, a price increase of $200 to $300 translates to only $4 to $6 per month, indicating consumer affordability.
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- Lobbying Efforts: Apple is lobbying the Trump administration for clearance to purchase memory chips from ChangXin Memory Technologies (CXMT), aiming to alleviate financial pressure from rising chip prices, highlighting the dilemma faced by major U.S. tech firms under national security restrictions.
- Price Increase Impact: On Thursday, Apple raised iPad and MacBook prices, indicating it can no longer shield customers from soaring memory and storage chip costs driven by the AI industry's data center expansion, reflecting the broader market challenges.
- Regulatory Challenges: CXMT has been designated as a Chinese military company by the Defense Department, and was approved for addition to the Commerce Department's Entity List last year, meaning U.S. companies cannot ship goods, software, or technology to it without a license, which is likely to be denied.
- Engagement with Officials: Apple approached the Commerce Department over a month ago and engaged with other administration officials and allies in Washington, demonstrating its proactive efforts to seek a resolution to the supply chain issues it faces.
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- Data Center Revenue Expectations: For the first time, Qualcomm has set a target of over $15 billion in data center revenue by 2029, marking its ambition in a highly competitive sector, despite current data center revenues being almost negligible.
- Meta Partnership Agreement: Meta has agreed to use Qualcomm's new processor in its data centers under a multi-year deal, with production starting in the second half of 2028, providing significant validation for Qualcomm's entry into the data center market.
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- Price Increase: Apple has announced significant price hikes for its products, reflecting sustained demand for high-end electronics despite economic uncertainties.
- Market Reaction: On the afternoon of June 24, 2026, Apple’s stock price rose by 3.37%, indicating investor confidence in the company's future profitability, even though the price increases may impact sales.
- Publication Date: The related video was published on June 26, 2026, further drawing market attention to Apple's pricing strategy, especially amid intensifying competition.
- Strategic Implications: This price increase may be part of Apple's strategy to cope with rising costs and maintain profit margins, underscoring the company's steadfast positioning in the premium market.
See More
Apple's Price Hike Strategy and Market Response
- Price Hike Impact: Apple's recent price increases of 15% to 25% for Mac, iPad, and accessories aim to counter record-high memory cost inflation, thereby protecting gross margins, although analysts generally believe demand will remain stable.
- Market Performance Analysis: Apple stock is projected to end the week down 7.5%, marking its worst weekly decline since February, despite a nearly 1% gain on Friday, indicating investor concerns over falling demand versus margin protection.
- Analyst Perspectives: Morgan Stanley highlighted that Apple's price adjustments are focused on defending gross margins rather than merely offsetting cost increases, noting that such significant price hikes have not been seen in the last 15 years, showcasing Apple's strong market control.
- Investor Sentiment: According to Stocktwits data, retail sentiment around Apple trended bullish, with users suggesting brand loyalty will lead consumers to pay higher prices, reflecting a decrease in price elasticity, as the stock has risen 39% over the past 12 months.
See More
Apple Raises Prices by 15%-25% on iPads and Macs
- Price Increase Strategy: Apple raised prices on its iPads and Macs by 15% to 25% on Thursday, and while there are concerns about demand impacts, Morgan Stanley analysts believe this move is primarily aimed at protecting gross margins rather than just revenue growth.
- Gross Margin Protection: Analyst Erik Woodring from Morgan Stanley noted that Apple's gross margins typically exceed 40%, and the scale of the price increases reflects the company's strategic focus on maintaining profitability amid memory shortages.
- Demand Elasticity Analysis: Woodring suggests that Apple's demand has historically shown relative inelasticity, and the reliance on its ecosystem may insulate it from significant sales impacts, potentially driving upside in revenue and earnings.
- Consumer Financing Options: The financing options Apple offers, along with its higher-income consumer base, may further mitigate demand destruction risks; Woodring pointed out that assuming a four-year replacement cycle, a price increase of $200 to $300 translates to only $4 to $6 per month, indicating consumer affordability.
See More
Apple Lobbies for Clearance to Buy Memory Chips from ChangXin
- Lobbying Efforts: Apple is lobbying the Trump administration for clearance to purchase memory chips from ChangXin Memory Technologies (CXMT), aiming to alleviate financial pressure from rising chip prices, highlighting the dilemma faced by major U.S. tech firms under national security restrictions.
- Price Increase Impact: On Thursday, Apple raised iPad and MacBook prices, indicating it can no longer shield customers from soaring memory and storage chip costs driven by the AI industry's data center expansion, reflecting the broader market challenges.
- Regulatory Challenges: CXMT has been designated as a Chinese military company by the Defense Department, and was approved for addition to the Commerce Department's Entity List last year, meaning U.S. companies cannot ship goods, software, or technology to it without a license, which is likely to be denied.
- Engagement with Officials: Apple approached the Commerce Department over a month ago and engaged with other administration officials and allies in Washington, demonstrating its proactive efforts to seek a resolution to the supply chain issues it faces.
See More
Qualcomm Doubles Non-Handset Revenue Target to $40 Billion
- Increased Non-Handset Revenue Target: Qualcomm raised its fiscal 2029 non-handset revenue target from $22 billion to $40 billion during its investor day, nearly doubling its previous goal, which underscores the company's commitment to diversifying away from smartphone dependency.
- Data Center Revenue Outlook: For the first time, Qualcomm set a target of over $15 billion in data center revenue by fiscal 2029, despite currently negligible earnings, reflecting its ambition in the data center market, particularly after securing a multi-year deal with Meta.
- Automotive Business Growth: Qualcomm's automotive revenue surged 38% year-over-year to a record $1.3 billion in fiscal Q2 2026, with management targeting $10 billion in annual revenue by fiscal 2029, indicating strong growth potential in the automotive sector.
- Market Competition Challenges: Despite ambitious targets, Qualcomm faces significant challenges in the competitive data center market dominated by Nvidia, with its AI accelerator not expected to begin commercial sampling until mid-2027, highlighting the hurdles in capturing market share.
See More
Qualcomm Significantly Raises 2029 Non-Handset Revenue Target
- Revenue Target Increase: Qualcomm has raised its 2029 non-handset revenue target from $22 billion to $40 billion, nearly doubling its previous goal, which reflects the company's strong commitment to diversification and reducing reliance on the smartphone market.
- Data Center Revenue Expectations: For the first time, Qualcomm has set a target of over $15 billion in data center revenue by 2029, marking its ambition in a highly competitive sector, despite current data center revenues being almost negligible.
- Meta Partnership Agreement: Meta has agreed to use Qualcomm's new processor in its data centers under a multi-year deal, with production starting in the second half of 2028, providing significant validation for Qualcomm's entry into the data center market.
- Automotive Business Growth: Qualcomm's automotive revenue rose 38% year-over-year to a record $1.3 billion in fiscal Q2 2026, with management targeting $10 billion in annual automotive revenue by 2029, indicating strong growth potential in the automotive sector.
See More
Apple Announces Significant Price Increases
- Price Increase: Apple has announced significant price hikes for its products, reflecting sustained demand for high-end electronics despite economic uncertainties.
- Market Reaction: On the afternoon of June 24, 2026, Apple’s stock price rose by 3.37%, indicating investor confidence in the company's future profitability, even though the price increases may impact sales.
- Publication Date: The related video was published on June 26, 2026, further drawing market attention to Apple's pricing strategy, especially amid intensifying competition.
- Strategic Implications: This price increase may be part of Apple's strategy to cope with rising costs and maintain profit margins, underscoring the company's steadfast positioning in the premium market.
See More
