Why Apple Just Suffered Its Worst Crash In Over A Year

Apple Inc. (NASDAQ:AAPL) stock tumbled more than 6% on Thursday, marking its biggest one-day decline since April 2025, after the company raised Mac and iPad prices. Investors viewed the move as a key test of Apple’s pricing power ahead of any potential iPhone price increases. The iPhone accounts for nearly half of Apple’s business. At the same time, Macs and iPads together represent about 14% of revenue, making the smaller categories a lower-risk place to test customer response, CNBC reported on Friday. Apple linked the increases to higher memory and storage costs driven by demand for AI data centers. Reportedly, investors are watching whether Tim Cook raises iPhone prices before John Ternus takes over as CEO on Sept. 1, which could give the next leader a higher baseline price and less margin pressure. Apple can either pass costs to customers, absorb the margin hit, or diversify its supply chain, according to the report. The company has reopened talks with Chinese memory suppliers after facing backlash over similar discussions in 2022. Dan Ives Says Apple Had To Protect Margins Wedbush Securities analyst Dan Ives told CNBC on Friday that Apple needed to raise prices because memory costs have surged across the technology supply chain. He said Apple waited as long as it could, but had to act at the start of what he sees as a major three-year hardware cycle. Ives said the increases may drive only limited churn, especially in higher-end products, and he viewed the stock reaction as overdone relative to the likely impact on demand and earnings. Sunil Garg Sees Broader Pressure On Consumer Tech Lighthouse Canton CIO Sunil Garg told CNBC on Friday that the AI capital spending boom should continue to be funded because hyperscalers continue to raise capital through equity and debt. He said that supports demand for upstream AI infrastructure companies, especially memory suppliers with locked-in, noncancelable orders. However, Garg said Apple and Microsoft Corp.’s (NASDAQ:MSFT) price increases point to a broader consumer technology challenge as rising costs and AI-driven changes pressure margins and business models. Gil Luria Says Apple Faces Three Pricing Drivers D.A. Davidson’s Gil Luria told CNBC on Thursday that Apple’s price increases reflect higher memory costs, a major upgrade cycle, and the possible launch of a foldable iPhone priced above $2,000. He said Apple is raising prices now to manage memory cost pressure, avoid weaker pricing next year, and prepare customers for a higher-priced foldable device. Luria said Apple must carefully balance the increases to preserve growth into next year, especially as investors continue to treat the stock as a safer large-cap technology name despite potentially slower growth. AAPL Price Action: Apple shares were down 0.01% at $275.12 during premarket trading on Friday, according to Benzinga Pro data. Photo via Shutterstock