Apple raises device prices after memory costs nearly double, eroding margins and pressuring hardware demand.
Apple shares fell 6.6% after the company increased prices across Macs, iPads, and Vision Pro devices to offset soaring memory chip costs. The move follows reports that DRAM and NAND prices have nearly doubled, forcing Apple to pass expenses to consumers rather than absorb them internally.
Memory suppliers like Micron have secured $100 billion in take-or-pay contracts, reflecting tight supply. Analysts warn that hardware makers without Apple’s pricing power may face demand destruction, as competitors like Microsoft also raise console prices. Apple’s price hikes range from 15% to 25% on iPads and 15% to 20% on Macs.
The decline erased 7.67% of AAPL’s value over the week, marking its steepest drop in months amid broader concerns over AI-related memory demand cooling.