New York, June 22, 2026, 17:50 (EDT)
Apple ended Monday down 0.3% at $297.01, after hitting $302.42 earlier in the session. While AAPL slipped, the stock did better than the Nasdaq and most big tech names. Over the past five sessions, AAPL is still up about 2%.
Apple’s strength is key with the company getting ready to test its pricing power as memory and storage costs go up. The decision is straightforward: either pass the higher costs to customers or take the hit on margins.
Nasdaq slid 1.32% and the S&P 500 shed 0.37%. Alphabet slipped 5%. Microsoft dropped over 2% with other big tech names. “This is a very sentiment-driven sector,” said Bill Northey, senior investment director at U.S. Bank. He said the group tends to move together. Reuters
Apple CEO Tim Cook said last week “price increases are unavoidable,” without saying which products, when, or by how much. Cook called the cost pressure “unsustainable” and blamed DRAM shortages as makers shift more of that memory to AI server chips. Reuters
Apple has more flexibility than other handset makers. It took about 20% of global smartphone shipments last year, matching Samsung. But Apple grabbed more than two-thirds of the market for phones priced at $600 or higher and over 75% of devices selling for more than $1,000.
BofA Securities is keeping its Buy call and $380 target following Cook’s remarks. The firm bumped up its assumed price hike for the Pro and Pro Max by $100, held the base model flat, and shaved unit estimates. BofA now sees about 100 basis points more pressure on product gross margin, or one percentage point extra hit to the share of sales that stays after costs.
Apple’s possible move to work with Intel may give it more chip supply options later, but won’t ease the current memory shortage. Bernstein’s Stacy Rasgon called the deal “as official as things are ever going to be these days,” though he sees Intel doing just some small runs for less important chips at first. Axios
But Apple is at risk if it pushes prices too hard. If customers balk at higher device prices and component costs don’t come down, the company might get hit with both weaker sales and slimmer margins. Deutsche Bank’s Melissa Weathers warned that DRAM supply tightness “could persist well into 2028 and potentially beyond.” StreetInsider.com
Micron Technology is up next on Wednesday with quarterly numbers due after the bell. The memory-chip maker’s stock just closed at a record. Apple watchers will be looking for Micron’s take on prices, supply deals and new production. That could give a read on whether the squeeze is getting worse. Shares held up on Monday, but it’s not clear yet if buyers are on board with higher-priced devices.
