Apple Shares Rebound After Drop on Mac, iPad Price Hikes

Apple shares climbed 1.95% on Friday after a 6.1% drop on Thursday following the company’s announcement of price increases on select Mac and iPad models. The stock remains down about 8% for the month and is on pace for its weakest monthly showing since December 2022, according to market data.

Apple raised prices on certain Mac and iPad models by roughly 15% to 25%, citing higher costs for components, particularly memory and storage. The company linked the cost increases to rising demand for components used to support artificial intelligence features, which has pressured hardware margins.

Investors reacted to the price changes by selling the stock on the announcement day, reflecting concern that higher retail prices could reduce demand for consumer electronics while inflation remains elevated and households prioritize essential spending.

Some Wall Street analysts maintained bullish ratings and framed the pullback as a potential entry point. Morgan Stanley kept an Overweight rating and a $360 price target; analyst Erik Woodring wrote that if Apple’s demand stays relatively inelastic because of its integrated ecosystem, the price increases could lift revenue and earnings versus current estimates. The firm also noted that financing programs can spread device payments over several years, lessening the monthly impact of higher sticker prices.

Nancy Tengler, chief executive of Laffer Tengler Investments, commented, “Consumers will spend less on something else if they absolutely must have a Mac Pro.” Wedbush reiterated an Outperform rating and a $400 price target, with Dan Ives saying Apple is positioned to raise prices without materially increasing customer churn given its premium focus and higher-income buyer base.

Analysts pointed out that Apple has not raised iPhone prices. They said future iPhone models could see upward pressure as memory requirements grow to support advanced AI features and component costs persist. Morgan Stanley added that Apple appears to prioritize protecting gross profit dollar growth on iPhones rather than targeting fixed gross margin percentages.

Market participants said they will watch upcoming sales figures and any pricing decisions for future iPhone models to assess how higher hardware prices affect overall demand, revenue and profit trends.