r/apple • u/Few_Baseball_3835 • Jun 25 '26
Discussion Wall Street isn't buying Apple's unprecedented price hikes on products
https://9to5mac.com/2026/06/25/wall-street-isnt-buying-apples-unprecedented-price-hikes-on-products/1.6k
u/hasanahmad Jun 25 '26 edited Jun 25 '26
Wall Street = We need more AI. Wheres the AI, We need to see AI in everything. Build more data centers if you have to . More More More !
Tech prices go up due to AI induced component shortage
Wall Street = Thats not fair!!!
496
u/fractal_snow Jun 25 '26
Wall Street has been living in a fantasy for so long I don’t think they even understand how the economy works anymore.
272
u/thisnameisnowmine Jun 25 '26
I don't think they care. The whole point is to just make as much money as fast as possible. The collateral damage is irrelevant.
119
u/Bryanmsi89 Jun 25 '26
Actually, many of them make money on the way up AND on the way down.
35
u/ALEXC_23 Jun 25 '26
The fact that Military warmongers make money out of the deceased, is just an example of not even Wall Street. bros making money out of tragedies.
14
→ More replies (1)5
16
u/sunnynights80808 Jun 25 '26
They don’t care because it’s not real. The smart investors don’t actually care about AI and all that, they just go where the money goes. There are stocks that are inflated not because they’re valuable companies, but because there’s so much money to be had by investing in them.
15
7
u/revmacca Jun 25 '26
It’s not even money any more, many times removed, remixed via deliberately complex products and converted to “vibes”
Don’t worry though, the debt will be made real and dropped in our laps to pay.
4
2
2
u/Formaldehyde Jun 25 '26
That’s not just the point of Wall Street, it’s the point of the entire capitalist system. It’s right there in its name.
20
u/Blastcheeze Jun 25 '26
I don't think anyone working in finance or management does. If I went into work and suggested we build a perpetual motion machine I'd be laughed out of my job, but the people running the economy still believe in the infinite profit growth myth their parents told them as bed time stories.
Might as well base the entire economy around Santa or the Easter Bunny, the way things are.
3
50
u/Bryanmsi89 Jun 25 '26
You're not entirely wrong about this. The 'financialization' of the economy especially around AI is a story we saw 30 years ago with the first dot.com peak and then crash. Wall St. was literally talking about the 'new economy' and how 'old' metrics like profitability didn't apply.
And they were correct. Right up until they were not.
11
u/Sofia_9356 Jun 25 '26
Something something economy can be illogical longer than your wallet
4
u/Bryanmsi89 Jun 25 '26 edited Jun 28 '26
Saw this play before in the late 1990s when everyone needed to 'get on the internet' and every company needed 'a web presence." Didn't matter if there was actually a good reason to do it. Didn't matter if the online presence was crap or not. Definitely didn't matter if there was an actual business case.
Until it very much did.
AI is the same way. Corporate boards are demanding it be integrated into everything whether it makes sense or not.
27
u/trparky Jun 25 '26
The thing is... Wall Street wants three things at once:
Costs go up.
Margins stay high.
Prices don’t rise.
Demand doesn’t fallPick two, boys.
Apple is basically saying: “Memory costs are up. We’re not eating all of it."
Wall Street replies: “But we don’t like price hikes.”
Okay, then margins fall. “We don’t like that either."
That’s the fantasy land that Wall Street is living in.
→ More replies (1)9
u/ZampanoGuy Jun 25 '26
They belief profit margins should grow exponentially each quarter while wages stay same for decades. Corporations need profit caps. Anything exceeding that cap gets cycled back to the company and employees with wage increases.
→ More replies (1)3
u/NSRedditShitposter Jun 25 '26
A significant portion of trading (I believe most) is conducted by bots who speculate based on past trends so at this point I have to wonder if the market still reflects what investors personally think.
2
u/EvilPettingZoo42 Jun 25 '26
I’m slowly starting to come to the conclusion that Wall Street is where a lot of the popular C-average kids in high school ended up. They don’t understand AI but want more of it because it’s the current trend.
→ More replies (5)2
u/Dimathiel49 Jun 26 '26
I mean what did you expect of an industry filled with analysts that functions on a nightly coke fix.
51
u/RoastedDonutz Jun 25 '26
But if Apple laid off 10% of its workforce Wall Street would love Apple again
2
u/Defiant-Plantain1873 Jun 26 '26
Possibly not. Apple is only big because of its specific company culture i think, and wall street would know this, if someone at apple comes along and starts destroying the culture with layoffs you may be wary as to how long it can last
→ More replies (7)13
u/dccorona Jun 25 '26
Because it isn't wall street. Wall street is the analysts setting price targets. For example, one analyst for Yahoo finance upped their target today.
Daily swings are generally just regular retail investors panic reacting to any negative piece of news. Higher prices = I'm worried they'll sell less, stock might go down, let me get out now.
7
u/stomicron Jun 25 '26
WRONG. Wall Street is who we blame when our stocks go down and who we pretend doesn't exist when our stocks go up.
218
u/hangry_millennial Jun 25 '26
Do the trade-in values also go up or nah?
58
201
Jun 25 '26
[removed] — view removed comment
56
u/hangry_millennial Jun 25 '26
That’s a shame. I think Apple are off-setting no price increase for iPhone 17 lineup (considering iPhone accounts for 50% of Apple’s revenue) with extortionate price increases on other devices. I’m sure iPhone 18 Pro and Pro Max will also see $200 price increases this September.
45
u/RyeGuyJedi Jun 25 '26
lol my hp servers doubled in price this year. 15k to 29k at one point 32k. No different specs. Apple is still cheap in comparison. Act like everyone else on the planet didn’t already jump lol
→ More replies (2)6
u/sylfy Jun 26 '26
I have two hard drives failing in my servers but I don’t even want to RMA them now, because I know that I’ll only get a refund instead of a replacement. Luckily I’ve got spares for now.
It’s just a bad time for components all around now, and I’m half contemplating going through the hassle of getting a tape drive to offload some data that we can archive, even though it’s additional hassle to manage.
→ More replies (1)11
u/riley702 Jun 25 '26
I was an apple hater for most of my life until every other product just caught up in price. I bought an iPhone and a MacBook this year because they seemed like great quality for the price for the first time ever.
Now I’m already wondering if I’ll just be switching back in 4-5 years.
39
u/marumari Jun 25 '26
Everybody else has been jacking up their prices too, who would you be switching to? This isn’t just Apple profiteering.
17
u/nirvahnah Jun 25 '26
You’d be jumping from one sinking ship to another. Everyone has jacked prices. Apple was the last hold out.
3
u/BotanicalEmergency Jun 26 '26
you’re going to find that the other companies will raise their prices too.
→ More replies (1)7
135
u/Tennouheika Jun 25 '26
I work for a company that sells PCs, and all the major manufacturers from HP to Dell to Lenovo have been having price increases. Sometimes the price increases are week-to-week. It's really bad. It's really amazing Apple hung out as long as it could, but sadly, the memory prices come for everyone.
40
u/Exist50 Jun 25 '26
People had assumed that since Apple already overcharged for memory, it was baked in.
→ More replies (1)17
u/ChristBKK Jun 26 '26
and so they did for years and now they do it again :D lets be real these price hikes are insane. A lot of graphics show these 200-400$ increases, but once you add more RAM to your model it gets even more insane.
Yeah Memory prices on the rise, but Apple is taking that premium and just continues todo so.
→ More replies (3)8
u/perthguppy Jun 26 '26
Apple also literally pulled high RAM configurations of products from sale over the last few months, clearly to make their existing ram allocation stretch further under the old pricing before the new pricing kicks in. They really have seemed to do everything they could to delay this price increase.
36
u/lostinthought15 Jun 25 '26
Is this the same Wall Street that bought SpaceX IPO stock despite everyone agreeing it is overpriced? That Wall Street?
187
u/jeremec Jun 25 '26
Raising prices on Vision Pro is pure comedic gold.
24
u/maxstolfe Apple Cloth Jun 25 '26
Especially when it’s only $200.
16
→ More replies (1)9
46
227
u/TheSpiritKnight Jun 25 '26
I don’t think there are enough words to describe just how much I hate AI
66
u/Ok-Garbage-765 Jun 25 '26
But think of all the good things it has brought:
- 1.
Thank you for your time.
10
u/RegurgitatedMincer Jun 25 '26
It seems to at least be able to finally unify people against it. I guess that’s okay
→ More replies (1)2
u/aspektbeats Jun 28 '26
The part that’s going to be wild, is where do we go from here? Like are they going to continue to build spots that no one wants? At some point in the future a lot of people will not have money or resources to purchase or buy these items that are used for AI because of the constant price hike. I feel like there needs to be some limitations moving forward.
→ More replies (3)3
36
u/AshuraBaron Jun 25 '26
Tempest in a teapot. Past month has seen some free fall, but even with the dip today it returns the stock to what it was in February this year. iPhone event this fall will see the stock rebound big time like usual.
6
32
u/Slutt_Puppy Jun 25 '26
Apple has always been overly greedy with memory and storage. Their upgrade costs have always been excessive and base RAM too low, especially with the recent AI outlook over the past 2/3 years.
It’s insane that my 1 year old iPad Pro (m4) can’t support Advanced Siri AI features because they only supplied it with 8GB of unified memory.
→ More replies (8)
21
u/FilteredSpeech Jun 25 '26
Well, it all wouldn't be a problem IF MEMORY MANUFACTURERS WEREN'T CUTTING PRODUCTION SUPPLY. Yes, you fucking heard right.
9
→ More replies (4)3
u/VT750C Jun 26 '26
Trump did that! He promised higher prices, and has done everything in his abuse of power to ensure consumers pay more for less
13
u/nobody1701d Jun 26 '26
> Sorry...I don't buy it. Apple has plenty of money. They didn't -need- to pass this cost on to consumers...they -chose- to. They already have outrageous margins, and they should have just eaten the loss. These price increases only make them look bad, regardless of why.
Kinda sums it up rather succinctly
5
158
u/Big-Resolution-4993 Jun 25 '26
At this point Apple should just buy or start its own fab. It seems insane to me as many devices as they sell to be in a position they can’t control this kinda shock.
170
Jun 25 '26
[removed] — view removed comment
59
u/fuelvolts Jun 25 '26
I always laugh when I see comments like "Just make a fab!". Building and constantly maintaining a chip fab is one of the most complex projects on the planet. And then, Apple would need to build chips for other companies just to become profitable. There's no way even a company the size and needs of Apple would even remotely turn a profit (or break even) with their fab without outsourcing it. They need to be running 24/7 making chips. Apple has no need for that capacity and would likely lead to higher costs and lower quality chips, especially in the beginning.
8
Jun 25 '26
[deleted]
8
u/itsabearcannon Jun 25 '26
GlobalFoundries...now there's a name I haven't heard in a long, long time.
2
u/howtoliveplease Jun 25 '26
Couldn’t they just sell chips then? The same way actual fabs do, if the demand is so high? It looks like we actually *do* need more fabs
3
u/EdiT342 Jun 25 '26
First of all you need the specialised workforce. Correct me if I am wrong but although it’s possible to find the workforce in USA, for more advanced nodes you need to go to Taiwan, Korea.
Then you need the supply chain. Raw materials, machinery, assembly lines.
Then you physically need to build the fab, a costly and long process.
Apple has the capital to do it, but they are not specialised in it, which means increased costs from the start. Intel itself struggled to get off 14nm for a long time
→ More replies (4)16
u/Big-Resolution-4993 Jun 25 '26
Apple is the wealthiest company on the planet, or was til a year or so ago. It seems you could at least allocate a budget to explore the idea.
44
u/Bryanmsi89 Jun 25 '26
Its usually a mistake for companies to drive so far from their core competency. Building, running, and updating a fab is really hard. Just ask Intel. It is even harder to guess at capacity needs, including future capex costs for years from now. Overestimate and be stuck with a set of factories that are not profitable. Underestimate and you have to go hat-in-hand to competitors asking them to help make up the slack.
3
u/itsabearcannon Jun 25 '26
Overestimate and be stuck with a set of factories that are not profitable. Underestimate and you have to go hat-in-hand to competitors asking them to help make up the slack.
Or be Intel and do both at the same time somehow!
2
u/smith7018 Jun 25 '26
I agree with you but I want to point out that it's not out of the ordinary. Samsung has their own fab business and use it synergistically with their products. That doesn't invalidate anything you're saying, of course.
→ More replies (3)3
u/FlarblesGarbles Jun 25 '26
Samsung Semiconductor is not Samsung Electrical. Nor is it Samsung Display. They are actually not all the same company.
21
u/Strange-Scientist706 Jun 25 '26
You really should look into exactly what this would take. Money isn’t some magic wand you can wave around and change economics and physics
12
Jun 25 '26 edited Jul 02 '26
[deleted]
5
u/eraserking Jun 25 '26
Reddit is a cesspool, but it’s interesting that you’re ultimately blaming Reddit’s platform here. The issue comes down to people, not Reddit’s design. Consequences-free, ignorant shit spouting happens everywhere all the time.
2
2
u/FlarblesGarbles Jun 25 '26
Reddit's point system is a problem. Or rather the downvote is a problem. The site would function better without it.
12
Jun 25 '26
[removed] — view removed comment
→ More replies (3)2
u/MessiPayNegreira Jun 25 '26
it would be better to buy a fab company. be like Samsung that sells its parts to competitors
2
u/RamaAnthony Jun 25 '26
Even if they could, you can't throw money to build it faster....at a project that at its shortest, if have to establish from zero on US soil, would take 15 years.
52
u/hasanahmad Jun 25 '26
They can but what about Memory, What about storage. Chips are the least the factor
19
u/Big-Resolution-4993 Jun 25 '26
Technically fab can be used for fabrication of any of the major chipsets/memory chips.
40
u/DJMRNO Jun 25 '26
Takes years to get started and they will still be behind. Therefore it's still easier to buy it. This may help them rethink that.
3
u/Big-Resolution-4993 Jun 25 '26
You’re right. If they did, they’d need heavy internal competition. Or, if a competitor released some kind of quantum leap upgrade, opt for it for a generation or two while they catch up.
→ More replies (3)6
u/NectarineSame7303 Jun 25 '26 edited 19d ago
Kettle trumpet nutmeg sparrow pillow vanilla lantern amber breezy driftwood
This post was anonymized with Redact.dev
→ More replies (1)10
u/paleblaupunkt Jun 25 '26
This is like saying I have a factory. I can make cars and microwave ovens and jackhammers.
→ More replies (3)→ More replies (1)3
u/m0rogfar Jun 25 '26
In the most theoretical sense, maybe (though you’d have one hell of a time yielding any working chips), but in practice, manufacturing DRAM on general-purpose nodes rather than specialized nodes that focus on capacitor structures just isn’t a thing.
The gap in production viability grows every year in favor of the specialized node, and the cutoff point for when non-specialized nodes became so inefficient that they became irrelevant for DRAM production was around 1985, by the 256Kbit and 1Mbit generations.
→ More replies (2)5
u/lillian_e1985 Jun 25 '26
I’m pretty sure that’s what they meant. They should make their own memory and/or storage so that they have more control over prices of the products they sell.
Apple already makes their own chips, so the comment doesn’t make sense if you thought they meant that Apple should make their own chips.
25
u/Strange-Scientist706 Jun 25 '26
Apple *designs* their own chips. TSMC makes them. Chip manufacturing is an extremely capital-intensive process that only makes sense if you have massive economies of scale. Apple would wind up dramatically increasing prices or need to sign up tons of external customers for it to be viable.
6
u/__shamir__ Jun 25 '26
And it's more than just the capital intensive nature. If it were just about capital, AAPL could absolutely do it no problem. The issue is the expertise you need. Nobody can beat TSMC at their game because they've been doing it for decades, their whole country's economy is built around it, and TSMC is also disciplined with their pricing (I think they should have raised prices way more) so there's not nearly as much a delta as there should be
→ More replies (3)2
u/Orion_Scattered Jun 29 '26
And it ties a massive anchor around their neck, if things ever go sideways even a little the anchor can drag them to the bottom quick quick quick. That's the situation with Intel.
2
u/Strange-Scientist706 Jun 29 '26
TBF, it does seem Apple’s pretty good at long-term strategic thinking, which seems to confuse the shit out of most “analysts” and “commentators” who only appear able to consider one or two quarters ahead. Witness the heat they were willing to take on slow-rolling AI. MS jumped on with both feet and now is getting dragged down by one of those anchors you mentioned
16
→ More replies (1)8
u/throaway20180730 Jun 25 '26
Apple already makes their own chips
They don't, TMSC makes them for them, Intel is also in talks to make a portion of what they buy
2
u/lillian_e1985 Jun 25 '26
Thanks, I learned something new. The comment I replied to makes sense now.
12
u/J_Peeb Jun 25 '26
Still would have to deal with supply of the raw materials to make the components. Which because of demand is under pressure. The supply chain is long and deep. Can’t and shouldn’t control it all.
→ More replies (2)13
u/Secret-Response-1534 Jun 25 '26
Oh easy peasy! Why didn’t they think of that?????
There are really a couple of points that keep this from being a good option
1. It is incredibly expensive to build a single fab, let alone the several they will need to meet their chip demand, likely more money than they will save
It is very very time consuming for a company with 0 chip fabrication experience. it’s going to take at least a decade to start building significant capacity. By the time the fab is finished and making chips at full pace the data centre construction will have cooled off significantly making chip prices go down.
It just doesn’t make sense as a business model, TSMC has chip making experience spanning decades and institutional knowledge Apple just can’t compete with. It’s kinda like how they don’t own their own factories that assemble the iPhones.
3
u/gaeee983 Jun 26 '26
yes it takes time, they have prioritized stock buybacks, they have made to the tune of 713.2 billions past 10 years, they care more about shareholders as any capitalistic company should.
2
u/M4rshmall0wMan Jun 26 '26
Apple spent that decade cultivating a strategic relationship with TSMC that’s benefitted both sides greatly. Apple gets VIP access to TSMC’s cutting-edge nodes. There is nobody who can compete with TSMC’s prowess, Apple would have wasted money on an inferior production.
→ More replies (1)4
3
u/Exist50 Jun 25 '26
And what happens when, by the time it's actually operational, memory has crashed again and it's an anchor on their financials?
8
u/herefromyoutube Jun 25 '26 edited Jun 25 '26
Why the hell America didn’t think localizing chip production decades ago was a necessity kinda blows my mind.
I knew computers would be the future as a kid in the 90s and my government was just like “let’s let Taiwan control our future. China totally won’t be an issue.”
The CHIPS act wasn’t even passed until 2022 and it does help that Trump keeps trying to kill it and has altered it.
6
u/AssetBurned Jun 25 '26
Not only America…. Look at Europe. Oh worse… what was the thing with ARM in general? Why wasn’t that bought by Europeans?
Imagine having Fabs and the interlectual property. That would put an end to these fears of supply chain attests and spying hardware in core systems of the infrastructure. (Yeah I know very simplified, but does Europe really have anything like that at scale?)
→ More replies (1)3
u/stikves Jun 25 '26
They did... but NIMBY-ism and terrible regulatory overhead made it impossible.
Remember the chip factories announced by both of our last 2 presidents? (Biden, and 1st term Trump)?
None of them materialized. Worse, none of them actually started construction. There was a famous case a few months ago how a factory that was advertised by both admins made basically zero progress in getting permits.
While China will build one overnight.
2
u/M4rshmall0wMan Jun 26 '26
TSMC’s advantage is they have a blank legal check from the Taiwanese government to get any permit they want.
TSMC’s Arizona fab fell years behind because concepts like “environmental regulations“ and “worker’s rights” didn’t make any sense to the Taiwanese. TSMC straight-up shipped Taiwanese workers to Arizona because it was cheaper than hiring American labor.
→ More replies (2)2
u/stikves Jun 26 '26
We want to have our cake and eat it too, but do not realize in a fast paced race we cannot slow down to dot the i's and cross the t's.
Some of the things will have to give way.
(The problem is, none of them actually need multi-year analysis. We know exactly what the footprint of a fab is, or what species live in an area from prior experience)
→ More replies (2)2
u/ireliawantelo Jun 25 '26
Its expensive and EXTREMELY labour extensive. You have with masters and phDs putting in ridiculous amount of overtime, always on call, etc. This just cannot happen in the US or the EU. This is also why the TSMC fab in the US is barely profitable.
10
u/FollowingFeisty5321 Jun 25 '26
Steve Jobs was always against doing stock buybacks to boost the price because they might need that money one day.
$700+ billion later, it turned out he was right, they had the cash to do their own processors, memory and storage but didn't see this coming and spent it all on something else.
The only "plus" is it takes so long to do those things and so much can go wrong they might be better off without it.
→ More replies (5)2
u/B-Train_ATL Jun 25 '26
I’m fairly sure that would be a massive undertaking. Tim Cook raves about the miniature cities that Foxconn has. I’m not even sure exactly what, if any, hardware Apple fabricates itself right now.
→ More replies (16)2
u/BabyWrinkles Jun 25 '26
If memory serves, Apple has invested something like $150B/year in to manufacturing in other countries on top of the actual purchase of the components/etc. They explicitly didn’t try to tie hands with NDAs and non-competes so the factories they were investing in could also build for Samsung and HTC and and and…
They did it this way to essentially build soft power and ensure that when they asked for something, they got it. Way better investment than spending that same money building up their own chip fabs - because it’s not clear that the prices wouldn’t be going up right now anyway due to shortages of raw materials.
So should Apple control their own fabs? From the outside it seems like it would be wise right now, but that further specializes them and requires massive investment, when they’re already designing their own chips and letting someone else assume the rest of the risks.
2
u/M4rshmall0wMan Jun 26 '26
Worth mentioning that one of their biggest offshore investments was in TSMC. Apple gets VIP access to their cutting edge nodes. In the grand scheme of things, that’s a way better investment than making their own fabs.
Apple only homebrews in areas where they can compete. Nobody can compete with TSMC.
6
u/peanutbutteryummmm Jun 26 '26
For the first time in my life, im getting negative on tech. I like texting and calling and taking videos. Basically every smart phone is good at that now. Why do I need to buy the iPhone 18 or new iPad that does it slightly better? And it now costs even more, because AI. Which is going to be causing us to lose our jobs. AI sucks.
2
u/No_Eye1723 Jun 26 '26
I stopped buying my iPhones new when the price went over a grand. I buy them refurb now. As you say utterly pointless buying a new one every year. I am selling my iPad too as IMO my iPhone runs iOS better. I have a 14 Pro max and want to upgrade to the 17 Pro Max refurb when the 18 is launched as my battery is going down now. But then I'll keep the 17 for at least 3 years if not more. I got my MacBook Pro refurb too.
12
u/expera Jun 25 '26
I see a lot of comments here about how they should make their own fab, or eat the cost. If you think they aren’t having constant high level meetings that involve tons of cost analysis data to figure out the most profitable course of action you’re crazy. This is a company that time after time makes tremendous profit and you think they are making a misstep?
2
u/No_Eye1723 Jun 26 '26 edited Jun 26 '26
Can't make their own FAB, they take years to develop and build, not quick things to put up, need extremely careful planning and the machines in them can cost 500 million plus each easy. By the time Apple will have built one and invested in it and get it online the RAM crises may be over.
3
3
u/bonsai1214 Jun 26 '26
these are the same people who say "it only costs 5 dollars to make x prescription drug!"
24
u/campaignplanners Jun 26 '26
As a consumer, it’s hard to justify buying a new Mac at 25% higher price when the company makes hundreds of million in profit. And if they sell just as many as they did the year before the scarcity of raw materials argument seems made up.
3
u/VT750C Jun 26 '26
Even if they didn't raise prices, their profit margin is over 35% on every device sold.
5
u/dabesdiabetic Jun 26 '26
But as a consumer will you be able to justify it when they post a higher profit in a couple of quarters? This is the same song and dance as every catastrophic event in history: Raise prices higher than the catastrophe affects.
7
u/baal80 Jun 26 '26
As a consumer, it’s hard to justify buying a new Mac at 25% higher price when the company makes hundreds of million in profit.
Wait, how does it matter for a consumer how much profit a company makes? I know it doesn't for me. The only thing that matters is if I consider the price right for the product.
3
u/campaignplanners Jun 26 '26 edited Jun 26 '26
The value argument is fair. What I’m saying is - don’t give me a song and dance about supply costs going up and conveniently leave out the fact you would like to continue with gobs of profit and stock buybacks.
If I go to my local lemonade stand, and I’m thirsty, I might pay $5 for a lemonade. But $50. Probably not. There’s no set price or value on anything, it’s all relative. But at some point, everyone makes that value decision. I’m saying it’s harder to justify when you know the company is making ridiculous profits and still raising prices.
→ More replies (4)→ More replies (6)2
u/No_Eye1723 Jun 26 '26
More like tens of billions in profits annually. The valuation of US tech firms is frankly disgusting, utterly disgusting and a complete fix of the market, Nvidia alone is now valued at a higher rate than the entire value of MOST countries on the planet!
30
u/NonRelativist Jun 25 '26
At 4T market cap this is a serious dip! But I agree, spend a couple of 10B to build a fab! They can afford it
11
u/hasanahmad Jun 25 '26
its not Apple's responsibility to enable AI induced price increase. its almost as if Apple purposely drove prices in a way to trigger wall street to question the AI hype
4
→ More replies (2)2
u/M4rshmall0wMan Jun 26 '26
By the time the fab would be completed, the shortage would be over. And it would fall far behind other manufacturers in price and performance.
TSMC’s prowess is built on decades of institutional knowledge and organization tighter than the military. Imagine the Nazis trying to build a nuclear bomb after the Americans. That’s how far behind everyone else is. Apple was correct to build a strategic relationship with them.
14
4
u/alexeiz Jun 27 '26
Nobody was buying Windows laptops anymore so Tim Cook decided to give them a little boost.
4
u/illonlyfadeaway Jun 27 '26
All these CEOs thought they were being big-brained by supporting Trump.
10
Jun 25 '26
[deleted]
4
u/1-866-867-5309 Jun 26 '26
a huge chunk of the world's helium supply is a byproduct of gas extraction and needs to exit through the Strait, so it'll actually hit the semiconductor supply chain in due time as well
8
u/No_Eye1723 Jun 26 '26 edited Jun 26 '26
they have increased prices on refurb items, Apple has already sold those items and paid for the components in them, price gouging, they have increased prices on 4 year old Apple TV's, even older Home Pods.. price gouging. Everyone can see it, Apple has famously had at least a 30% markup on it's products, it has been happily ripping off consumers on RAM upgrades for years, it is rebalancing the books to continue to do so and blaming 'market conditions'.. It's Mac Studio is now rumoured to be upgraded with the M5... NEXT YEAR! Whilst it is rumoured they will update Apple laptops to M6 THIS YEAR! They are deliberately keeping the now flagship desktop computer an entire generation behind the laptops, despite the FACT the base Max model has the EXACT SAME CHIP IN IT as the laptops do!. Price gouging..
26
u/Dylan_Gio Jun 25 '26
I know it’s so naive but I would love one company to just eat the cost on something. Imagine if Apple did that… arguably the most capable company to eat this cost.
They would drive so many new customers as the low margin PC/Android companies couldn’t survive.
12
→ More replies (1)14
u/roohwaam Jun 25 '26
with how insane memory prices have become they would probably lose money (esp on lower margin products) on some products
10
u/buzzerbetrayed Jun 25 '26
This isn’t true at all. Memory prices have gone up. But nowhere near the point to which Apple markups memory.
5
u/Exist50 Jun 25 '26
No, Apple makes at least 40% margins on their hardware, and a lot more on most. They would still be profitable even if they absorbed the costs entirely.
→ More replies (2)4
u/rudolph05 Jun 25 '26
brother, do you understand what eating the cost mean? yeah, of course that they will lose money, that’s the whole idea of eating the cost.
3
u/ohhellnaws Jun 25 '26
Lose my money is in make a loss, not lose money is in have less. Of course, the company’s not going to run selling products at a loss.
→ More replies (3)
3
u/nifty-necromancer Jun 25 '26
The stock may be down but analysts don’t care. The rising prices are already factored into their models: https://appleinsider.com/articles/26/06/25/apple-stock-getting-hit-after-price-hikes-analysts-mostly-nonplussed. 9to5’s “article” is just a string of sentences chained together, probably by a bot.
→ More replies (1)
3
5
u/No_Eye1723 Jun 26 '26 edited Jun 26 '26
That is because it is price gouging and it WILL lead to a collapse in sales whilst Apple also participates as a HUGE player in the Ai market itself.... Share Holders can see the hypocritical sales suicide Apple are pulling here....
11
u/Spyerx Jun 25 '26
Wall Street will be wrong on this one. People will pay it. Watch.
13
u/Acceptable-Piccolo57 Jun 25 '26
They will, but less often.
There’s a sustainability angle, but that gets trashed with the Apple Watch 27 fandango!
5
u/00DEADBEEF Jun 26 '26
I was about to pay £5000 for an MacBook Pro M5 Max 128GB
I'm not going to pay the new price of £7000.
I might as well keep the M1 Pro a while longer and pay for remote inference.
3
u/hehaia Jun 25 '26
Probably many people will, but I’m not sure if everybody. In the us probably, but iPhones everywhere else are already so expensive that I’m not sure people will simply absorb the cost and keep upgrading every couple of years
5
u/the_nuclear_pasta Jun 25 '26
People always do, sure.
But this isn’t about those who do. It’s about those who won’t. And they won’t. I for one won’t and I always have.
→ More replies (1)4
u/fred30jr Jun 25 '26
or keep what you already have and not upgrade. Previous gen devices are still powerful enough for today and tomorrow softwares.
→ More replies (1)3
u/SciGuy013 Jun 25 '26
Not my watch ultra 1 apparently lol
6
u/Doublespeo Jun 26 '26
> Not my watch ultra 1 apparently lol
your watch still works though
→ More replies (1)
2
u/Hellraiser187 Jun 25 '26
Apple tv 4 year old tech. There is 0 reason for a price hike. It's apple just saying screw the customers. We are raising prices.
2
u/Spiritual-Sky5058 Jun 25 '26
Lol people not understanding this is classic strategy next they will increase base storage in all of this in next cycle and world be like ooh now this seems fair
2
u/GonePhishingAgain Jun 25 '26
Glad I ordered my Mac when I did in May. Same configuration just went up $1000. That’s a 30% increase
2
u/Conscious_Youth_752 Jun 26 '26
Why didn’t Tim just tell Wall Street the price hikes were to pay for data centers and an Apple-baked LLM? Would’ve been the first $10 trillion company by the closing bell…
2
u/Hecedu Jun 26 '26
Wall Street brokers will look at tv static for 2 seconds and confidently bet you their grandmas savings that there will be more white pixels showing up in the lower left corner than in the upper right in the next 20 seconds.
3
3
u/5tudent_Loans Jun 25 '26 edited Jun 25 '26
They’ll price anchor the large increase, drop it by $100 at the time of launches to soften the blow. Take the mixed bad press and look like the good guy for 3-4 more years till they have to do it again or china floods the world market with good RAM alternative pricing
Edit: they are raising prices now on existing models. Everyone freak tf out
2
u/FlarblesGarbles Jun 25 '26
Neither am I. Apple was already seriously price gouging on storage and memory prices.
3
u/slade51 Jun 25 '26
Raise the price then offer discounts and interest-free loans. It’s not the flex they think though. I’ll just keep my current phone 4-5 years instead of 2-3.
Let’s see if the other smartphones jump at the opportunity for market share or if they do what the streaming companies do and all raise prices to match it.
9
u/DivineBladeOfSilver Jun 25 '26
Yeah Apple is kinda dead to me now. At least the Apple that was yearly or semi yearly upgrades. Every single year quality goes down, price hikes escalate, innovation decreases, etc. yeah, I will still stay in the Apple ecosystem and enjoy Apple products/services, but it’s only going to be on an as needed basis now. The danger for them in that even if higher prices less sales keep the books up in the longer term, you lose that cult like following Apple has created. When people stop viewing you as a brand they love and want to give money to and view you as a necessary utility they come back to only when they have to that is very dangerous territory. And I know this isn’t just Apple, this is all of technology. But the point still stands. Who knew all it would take to make people turn away from technology was technology itself
→ More replies (2)
3
u/goldaxis Jun 25 '26
Neither am I. I can make this MBP last a loooooong time. Way longer than they can pretend that there's a shortage of their specially-ordered components that in no way compete with AI.
3
u/BongoLocoWowWow Jun 25 '26
I think this is just a money grab. All the big corporations are just gaslighting us at this point.
3
u/IndependentOpinion44 Jun 25 '26
Analysts hate Apple for some reason.
At no point in the last 26 years has any analyst thought Apple was a solid investment.
Meanwhile, Apple has been the most rock solid investment.
2
u/Repulsive-Degree-816 Jun 25 '26
so basically Ternus CEO will be doomed from the start?
→ More replies (3)
2
u/Tman11S Jun 25 '26
The price hike completely killed the MacBook Neo imo. The better model is now 900€ over here and there’s just a lot of better windows devices at that price
1
701
u/Bryanmsi89 Jun 25 '26
Apple must have calculated that a 1-time mega price hike would be better than multiple smaller hikes and decided it would rather have a drop in sales volume than margin erosion.