Apple Hiked Prices Of Its Products Due To Soaring Memory Costs — And Dan Ives Says AAPL Can Get Away With It

• Wedbush’s Dan Ives said Apple remains well positioned to raise product prices without materially hurting demand or increasing customer churn, citing the company's growing focus on premium devices and higher-end consumers.
• The analyst argued that Apple's loyal customer base and strong brand positioning give it greater pricing power than most hardware makers.
• UBS expects only modest near-term pressure on product margins, given that the iPhone accounts for roughly 80% of Apple's product revenue.

Apple Inc. (AAPL) raised prices across its product lineup, including MacBooks, iPads, and other home devices, due to soaring memory and storage costs, resulting in the stock suffering its worst single-day decline since April 2025.

However, Wall Street believes that Apple can get away with its latest price hikes.

Apple shares were up about 1% in Friday’s pre-market trade.

Dan Ives Remains Bullish On AAPL

According to TheFly, Wedbush’s Global Head of Tech Research, Dan Ives, maintained his bullish outlook on Apple. Wedbush maintained its ‘Outperform’ rating and $400 price target, implying an upside potential of 45% from Thursday’s closing price.

Ives said Apple remains well-positioned to raise product prices without materially hurting demand or increasing customer churn, citing the company's growing focus on premium devices and higher-end consumers.

In a research note, the analyst argued that Apple's loyal customer base and strong brand positioning give it greater pricing power than most hardware makers, allowing it to offset rising costs without compromising product quality or performance.

UBS said the recent MacBook and iPad price increases should help cushion the impact of rising memory costs, while noting that recent tariff relief has also supported Apple's gross margins.

The firm expects only modest near-term pressure on product margins, given that the iPhone accounts for roughly 80% of Apple's product revenue.

UBS added that more meaningful margin expansion would likely require iPhone pricing or configuration changes later in 2026, with most of the benefit expected to flow through in fiscal 2027. It has a ‘Neutral’ rating and a $296 price target on Apple.

AAPL’s Cook Says Situation ‘Unsustainable’

Apple CEO Tim Cook said during an interview with The Wall Street Journal that the situation had become “unsustainable,” while adding that the company tried to shield its customers from the price hikes.

He said that Apple is ready to use its cash reserves to boost memory supply and help in controlling prices, but added that the company won’t build its own memory and storage facilities.

“This is a hundred-year flood. I’ve never seen anything like it in any area in over 40 years,” he said.

Following the price hikes, the MacBook Neo now begins at $699, up from $599, while the MacBook Air 512GB version now costs $1,299, up from $1,099. The MacBook Pro 1TB model’s price has risen from $1,699 to $1,999.

The iPad Air 128GB version now costs $749, up from $599. The price of the iPad Pro Wi-Fi variant has been increased to $1,199 from $999.

The Apple TV now costs $199, up from $129, while the Mac Studio with M3 Ultra processor now costs $5,299, up from $3,999.

What Retail Traders Think Of AAPL Stock

Retail sentiment on Stocktwits around Apple trended in the ‘neutral’ territory at the time of writing.

AAPL stock is up 1% year-to-date and 37% over the past 12 months. The S&P 500 ETF Trust (SPY) is up 21% over the past 12 months, while the Invesco QQQ Trust (QQQ) is up 32%.

The Vanguard Total Stock Market Index Fund ETF (VTI) is up 22% during this period, while the Vanguard Growth Index Fund ETF (VUG) is up 16%.

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