MU MU Micron Technology, Inc. Loading... : Bullish and Bearish Analyst Opinions

Apple is raising prices on iPad and Mac due to a '100-year flood' in memory pricing, and expects further memory cost increases beyond September. — Memory inflation is a major headwind for Apple's gross margins, but a tailwind for memory suppliers like Micron, suggesting pricing power for those suppliers.

Apple's gross margin guidance of 48%-49% for the March quarter is higher than expected, despite an anticipated negative impact from memory inflation. This is driven by mix and leverage, suggesting the company is not passing memory costs to consumers yet. — Apple's ability to hold gross margins steady while facing memory cost headwinds indicates it has not yet used the pricing lever, which could be a significant risk/reward factor for its supply chain partners and components market.