Resin Shortage Impacts Electronics Pricing
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 50 minutes ago
0mins
Source: CNBC
- Resin Supply Disruption: The Jubail petrochemical complex in Saudi Arabia has halted production due to Iranian missile strikes, disrupting approximately 70% of the global supply of high-purity polyphenylene ether resin, which is expected to significantly impact electronics pricing.
- PCB Price Surge: According to a Goldman Sachs report, printed circuit board (PCB) prices have risen by up to 40% from March to April, directly affecting the costs of electronic products such as smartphones and computers, leading to increased price pressure on consumers.
- Supply Chain Vulnerability: TTM has indicated that despite its stock price rising over 400% in the past year, it plans to raise product prices by 5% to 25%, reflecting the erosion of profits due to rising raw material costs, particularly in lower-margin devices.
- Long-term Impact Warning: Experts warn that if the resin shortage extends into the autumn, electronics prices could reach their highest levels in a decade, prompting consumers to delay purchases of high-end devices due to rising prices and tight inventory.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to fall
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 311.230
Low
239.00
Averages
306.89
High
350.00
Current: 311.230
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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Resin Shortage Impacts Electronics Pricing
- Resin Supply Disruption: The Jubail petrochemical complex in Saudi Arabia has halted production due to Iranian missile strikes, disrupting approximately 70% of the global supply of high-purity polyphenylene ether resin, which is expected to significantly impact electronics pricing.
- PCB Price Surge: According to a Goldman Sachs report, printed circuit board (PCB) prices have risen by up to 40% from March to April, directly affecting the costs of electronic products such as smartphones and computers, leading to increased price pressure on consumers.
- Supply Chain Vulnerability: TTM has indicated that despite its stock price rising over 400% in the past year, it plans to raise product prices by 5% to 25%, reflecting the erosion of profits due to rising raw material costs, particularly in lower-margin devices.
- Long-term Impact Warning: Experts warn that if the resin shortage extends into the autumn, electronics prices could reach their highest levels in a decade, prompting consumers to delay purchases of high-end devices due to rising prices and tight inventory.
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- Valuation Multiple Expansion: Apple's price-to-earnings ratio has surged from 10.9 a decade ago to 37.7 today, a 246% increase, reflecting strong financial performance and a significant improvement in market sentiment, although future growth expectations face challenges.
- Substantial Stake Value: Berkshire's current stake in Apple is valued at $71 billion, representing 1.6% of its investment portfolio, indicating a major strategic positioning in the tech sector despite facing market volatility risks.
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- Siri Version Launch: The new version of Siri will utilize Google's Gemini AI models instead of Apple's own, expected to introduce multi-step functionality allowing users to handle multiple tasks in a single request, thereby enhancing user experience and strengthening market competitiveness.
- Potential Earnings Analysis: Analysts predict that Apple's Apple Intelligence platform could yield significant rewards, estimating a 13% increase in earnings per share from an accelerating replacement cycle and an additional 16% from upselling a premium version of Apple Intelligence.
- Subscription Model Opportunities: Evercore ISI analysts suggest that Apple could benefit from an iCloud-style AI subscription service and App Store fees for third-party AI apps, emphasizing Apple's distribution advantage with a ~1.25 billion iPhone install base without needing to win the frontier AI model race.
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Resin Shortage Impacts Electronics Pricing
- Resin Supply Disruption: The Jubail petrochemical complex in Saudi Arabia has halted production due to Iranian missile strikes, disrupting approximately 70% of the global supply of high-purity polyphenylene ether resin, which is expected to significantly impact electronics pricing.
- PCB Price Surge: According to a Goldman Sachs report, printed circuit board (PCB) prices have risen by up to 40% from March to April, directly affecting the costs of electronic products such as smartphones and computers, leading to increased price pressure on consumers.
- Supply Chain Vulnerability: TTM has indicated that despite its stock price rising over 400% in the past year, it plans to raise product prices by 5% to 25%, reflecting the erosion of profits due to rising raw material costs, particularly in lower-margin devices.
- Long-term Impact Warning: Experts warn that if the resin shortage extends into the autumn, electronics prices could reach their highest levels in a decade, prompting consumers to delay purchases of high-end devices due to rising prices and tight inventory.
See More
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- Tax Reform Impact: The Tax Cuts and Jobs Act signed by Trump in 2017 facilitated over $1 trillion in investments, slashing the corporate tax rate from 35% to 21%, which provided funding for share buybacks and propelled stock market gains.
- Changing Buyback Trends: In 2025, S&P 500 companies repurchased a total of $1.02 trillion, but buybacks are expected to decline significantly in 2026, with Google and Meta not engaging in buybacks in the most recent quarter, indicating a shift in funding priorities.
- AI Investment vs. Buyback Conflict: As AI data center construction accelerates, many companies are reallocating funds from buybacks to AI infrastructure, leading to a decrease in buybacks that could suppress earnings per share growth and exacerbate the risk of market overvaluation.
See More
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- Remarkable Investment Returns: Berkshire Hathaway's investment in Apple has yielded a staggering 1,300% return over the past decade, transforming a $10,000 investment into $139,630, showcasing its success in the tech sector.
- Significant Stake Value: Despite substantial share sales, Berkshire still holds a 1.6% stake in Apple, currently valued at $71 billion, reflecting its critical position in the global market.
- Market Sentiment Shift: A decade ago, Apple's price-to-earnings ratio was 10.9, which has surged by 246% to 37.7, indicating that the company's strong financial performance has significantly improved market sentiment.
- Investor Risk Advisory: The current high valuation implies that future growth expectations are already priced in, leaving prospective investors with a lack of margin of safety and the risk of not achieving the same growth as in the past.
See More
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- Declining Buybacks: Despite the Tax Cuts and Jobs Act enabling over $1 trillion in buybacks, the combined buybacks of Amazon, Alphabet, Microsoft, Meta, and Oracle fell to $12.6 billion in Q4 2025, a 70% drop from 2021 peak, which may negatively impact future earnings per share.
- AI Infrastructure Investment: Alphabet's plan to sell $84.75 billion in stock to fund its AI infrastructure will undermine the effects of its past buybacks and could lead to a significant drop in buybacks in 2026, affecting overall market liquidity.
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