New York, Feb 3, 2026, 10:55 (ET) — Regular session
- Apple shares slipped roughly 0.7%, while the Nasdaq-focused QQQ tumbled over 1% in early trading.
- India’s budget adjustment removes a tax hurdle affecting Apple’s effort to boost iPhone exports from the country
- A steep revision in DRAM price forecasts shines new light on component costs in phones and PCs
Apple shares slipped 0.7% to $268.07 in early Tuesday trading, underperforming the gentler decline in the S&P 500 as they followed a broader selloff in big tech. Microsoft and Nvidia dropped roughly 2.6% and 2.9%, respectively.
Apple investors are focused less on any one headline and more on the ongoing tension between costs and capacity. Two events in the last 48 hours have thrust that struggle back into the spotlight.
India is pushing to boost its electronics manufacturing, with Apple increasingly betting on the shift away from China. But rising memory-price forecasts are now threatening to push up costs for crucial components in iPhones, Macs, and iPads.
In New Delhi, authorities announced that foreign companies can supply machines to contract manufacturers in designated customs-bonded zones for five years without facing tax exposure — a shift Apple had been lobbying for as it expanded operations. Revenue Secretary Arvind Shrivastava said the government would “exempt you for 5 years” to provide firms with “certainty.” Shankey Agrawal of BMR Legal described the move as eliminating a “deal-breaking risk” for electronics manufacturing. Apple has yet to comment. Previously, this arrangement forced partners like Foxconn and Tata to bear more equipment costs and didn’t impact Samsung Electronics as much, since Samsung mostly produces in its own Indian facilities. (Reuters)
Separately, market researcher TrendForce raised its forecast for conventional DRAM contract prices, which are the bulk prices paid by major buyers. It now predicts a 90% to 95% surge in the January–March quarter compared to the previous one. The firm cited stronger demand from AI and data centers as factors tightening supply and giving suppliers more pricing leverage. (Reuters)
DRAM, or dynamic random-access memory, powers the working memory in phones and PCs. When contract prices jump, consumer electronics companies face tough choices: absorb the cost, pressure suppliers, or attempt to pass it on. None of these options come easy, especially with consumers already sensitive to prices.
Investors are zeroing in on a busy slate of earnings this week, with particular focus on results that could influence sentiment around Big Tech spending and the AI supply chain. Alphabet is set to release its numbers on Feb. 4, followed by Amazon.com on Feb. 5, both scheduled after the U.S. market closes. (Alphabet)
A macro factor is at play too: U.S. markets face a lighter data calendar following a partial government shutdown that pushed back crucial labor reports. Traders now rely more heavily on company forecasts and headline-driven moves. (Reuters)
The near-term outlook for Apple isn’t straightforward. India’s exemption covers export-focused bonded zones and is limited to a fixed timeframe, which means it might not trigger a quick boost in local manufacturing economics. Plus, if memory chip prices continue rising, Apple could face tough choices on margins, pricing, or product mix—moves that investors might not catch immediately.
Apple’s next key date is its annual shareholder meeting on Feb. 24, which will be held virtually. Investors will be watching closely for any updates on supply chain expenses and progress on its India expansion. (Sec)
