Apple and Microsoft both raise prices! Is AI-driven inflation showing a 'backlash effect'?

Due to rising memory prices, $Apple (AAPL.US)$ announced on Thursday a global price increase for Mac, iPad, and several hardware products, w Show More

Due to rising memory prices, $Apple (AAPL.US)$ announced on Thursday a global price increase for Mac, iPad, and several hardware products, with hikes reaching as high as $300. Apple CEO Tim Cook described the supply crisis as a "once-in-a-century flood," saying he had never seen anything like it in his more than 40 years in the industry. On the same day, $Microsoft (MSFT.US)$It also announced that Xbox consoles will see their third price hike starting August 1, with some models increasing by as much as USD 150. The price increases by these two tech giants have sparked market concerns: has inflation driven by AI already started squeezing profit margins for downstream consumer electronics and cloud providers? What’s your take on Apple and Microsoft’s price hikes, and how will their stock prices move going forward?

Views

32K

Posts

128

Join topic

Posts

News

Latest

Hot

Futubull Options Sir

Jun 26 18:41

Columns Options Sir Breaks Down the Headlines | After Raising Prices, Apple Plunges—Can It Handle the Pressure from the Memory Boom?

$Apple (AAPL.US)$ On Thursday, Apple raised prices across its Mac, iPad, and other product lines globally, with increases as high as $300. The MacBook Air saw a $200 hike, while the iPad Air jumped by 25%, marking the company’s largest global price adjustment in recent years. Following the announcement, Apple’s stock dropped sharply, closing down 6.12% yesterday.
The source of pressure is clear: memory inflation
This move sends a straightforward message: even Apple’s formidable supply chain capabilities are no longer sufficient to fully absorb the pressure caused by tight memory supply. Previously, the market largely viewed rising memory prices as a story confined to suppliers—when NAND prices climbed, memory suppliers $Micron Technology (MU.US)$ $SK Hynix (000660.KR)$ $Samsung Electronics (005930.KR)$ $SanDisk (SNDK.US)$ $Western Digital (WDC.US)$ and $Roundhill Memory ETF (DRAM.US)$ all benefited.Apple’s action reveals another side of the supply chain: the ability to push memory suppliers to raise prices has now become a cost challenge for downstream consumer electronics brands.
Micron’s strong earnings are another signal of price transmission
The impact of Micron’s latest quarterly results on downstream product pricing adjustments cannot be ignored. Itsmobile and client solutions business revenue reached $11.5 billion, up 49% quarter-over-quarter...