Apple Plans Price Increases Due to Memory Shortage
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Source: Newsfilter
- Memory Shortage Impact: Apple CEO Tim Cook disclosed in a Wall Street Journal interview that the company plans to raise product prices due to ongoing memory shortages, calling the hikes 'unavoidable,' highlighting the widespread impact of the memory crisis on the market.
- Expected Price Increases: Analysts predict that Apple may increase the price of the $999 iPhone Pro and $1,199 iPhone Pro Max by $100, while lower-end devices might remain unchanged, which could significantly affect consumer purchasing decisions.
- Market Share Opportunity: As Android device manufacturers cut specs or raise prices due to rising memory costs, Apple could leverage this situation to attract budget-conscious consumers, potentially expanding its market share, especially in the premium segment.
- Supply Chain Challenges: The memory shortage faced by Apple is primarily due to limited production capacity for DRAM and NAND; although the company plans to use its cash reserves to increase supply, the construction of new factories will take years to yield results.
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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: 295.950
Low
239.00
Averages
306.89
High
350.00
Current: 295.950
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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