Apple Inc. (AAPL) shares ended Monday's session down 0.3% at $297.01, a relatively modest decline compared to the broader technology sector. The stock had earlier touched an intraday high of $302.42 before retreating. Over the past five trading days, Apple remains up approximately 2%, underscoring its relative resilience amid a broader sell-off in big tech names.
The Nasdaq Composite slid 1.32%, while the S&P 500 fell 0.37%. Among major tech stocks, Alphabet Inc. (GOOGL) dropped 5%, and Microsoft Corporation (MSFT) lost over 2%. Market participants described the weakness as sentiment-driven, with the sector moving in tandem. “This is a very sentiment-driven sector,” noted Bill Northey, senior investment director at U.S. Bank.
Apple’s relative strength comes as the company prepares to test its pricing power in the face of rising memory and storage costs. CEO Tim Cook recently warned that “price increases are unavoidable,” though he did not specify which products would be affected, the timing, or the magnitude of the hikes. Cook characterized the cost pressure as “unsustainable,” attributing it to DRAM shortages as manufacturers shift production capacity toward AI server chips.
Apple’s dominant position in the premium smartphone market affords it more flexibility than rivals. The company captured roughly 20% of global smartphone shipments last year, matching Samsung, but it claimed 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. This pricing power is a key factor behind investor confidence.
BofA Securities maintained its Buy rating and $380 price target on Apple following Cook’s remarks. The firm raised its assumed price hike for the Pro and Pro Max models by $100, left the base model unchanged, and trimmed unit estimates. BofA now expects an additional 100 basis points of pressure on product gross margin, representing a one-percentage-point hit to the share of sales retained after costs.
Apple’s potential collaboration with Intel Corporation (INTC) could broaden its chip supply options over the long term, but it will not alleviate the immediate memory shortage. Bernstein’s Stacy Rasgon described the deal as “as official as things are ever going to be these days,” though he expects Intel to initially handle only small production runs for less critical components.
However, the risk of pushing prices too high remains. If consumers resist higher device prices and component costs fail to decline, Apple could face both weaker sales and compressed margins. Deutsche Bank’s Melissa Weathers warned that DRAM supply tightness “could persist well into 2028 and potentially beyond.”
All eyes now turn to Micron Technology, Inc. (MU), which is scheduled to report quarterly results after the closing bell on Wednesday. The memory-chip maker’s stock recently closed at a record high. Apple watchers will scrutinize Micron’s commentary on pricing, supply agreements, and new production capacity for clues on whether the cost squeeze is intensifying. While Micron shares held steady on Monday, it remains uncertain whether consumers will embrace higher-priced devices.
