New York, Feb 1, 2026, 09:32 EST — Market closed
- Apple shares ended the day up 0.46%, closing at $259.48 following a choppy session.
- Investors are balancing a brighter sales forecast with ongoing limits in processor and memory supply.
- Attention shifts to margins, component expenses, and any fresh details on 2026 iPhone strategies.
Apple shares ended Friday 0.46% higher at $259.48, after fluctuating between $252.18 and $261.90 as traders adjusted their positions ahead of the week. Volume surged past 92 million shares, exceeding typical daily figures. (Investing)
U.S. markets were closed Sunday, shifting the focus from demand to whether Apple can deliver enough devices while managing rising component costs. The stock’s price action has increasingly reflected concerns over margins.
Late last week, Apple projected March-quarter revenue growth between 13% and 16%, beating analysts’ estimates. However, processor supply constraints are already impacting iPhone production. Tim Cook told analysts the company is “currently constrained,” citing tight supplies at TSMC. Apple also set a gross margin forecast of 48% to 49% for the quarter—a critical indicator of profitability after parts and assembly costs—and flagged rising memory prices as a potential drag on that margin. eMarketer analyst Jacob Bourne said that if hardware margins tighten, services momentum will become “even more vital.” (Reuters)
Costs are climbing throughout the supply chain. Apple has flagged that rising memory chip prices are starting to squeeze its profit margins, as Samsung Electronics and SK Hynix shift capacity toward higher-margin chips for AI servers. High-bandwidth memory, or HBM, is a faster memory type crucial for AI chipsets. According to Macquarie Equity Research, SK Hynix commanded 61% of the HBM market last year, with Samsung holding 19% and Micron 20%. (Reuters)
Nikkei Asia reported that Apple is focusing production and shipment efforts on its top three iPhone models for 2026, including its first foldable device. Sources told the outlet the standard iPhone 18 might be pushed back to the first half of 2027. Reuters hasn’t independently confirmed this, and Apple didn’t respond to requests for comment outside business hours. (Reuters)
Apple’s move into on-device AI is now making headlines as a deal. The company confirmed it bought Q.ai, an Israeli startup specializing in AI for audio, in a deal reportedly worth around $1.6 billion, according to a source. Johny Srouji described Q.ai as “a remarkable company,” while CEO Aviad Maizels said that joining Apple “opens extraordinary possibilities.” (Reuters)
The risk scenario is clear: chip shortages hit before demand drops, forcing Apple to either ship fewer iPhones or accept tighter margins. According to The Wall Street Journal, the surge in AI is ramping up competition for chips and memory, driving up costs for consumer gadgets and squeezing Apple’s typical supply-chain advantage. (The Wall Street Journal)
Wall Street kicks back into gear Monday, with investors keen on new analyst updates and clues on whether Apple can maintain its March-quarter margins amid climbing memory costs. Up next: Apple’s $0.26 per share dividend, set for payment on Feb. 12 to shareholders recorded by Feb. 9. (Apple)
