Apple suffers worst day since April 2025 as price hikes fuel iPhone fears

Summary

Apple shares suffered their worst session since April 2025 after raising Mac and iPad prices by up to $500, sparking fears that iPhone price hikes could follow. The market views the move as a test of Apple's pricing power, with investors bracing for margin pressure and demand headwinds. However, some analysts see an AI-driven iPhone super cycle on the horizon, potentially cushioning any price increases thanks to strong upgrade needs and installment plan adoption. CEO Tim Cook's impending departure adds to uncertainty around pricing strategy.

• Apple increased Mac and iPad prices by up to $500 due to rising memory and storage costs
• Investors interpret the hikes as a test of pricing power before potential iPhone price increases
• iPhone accounts for nearly half of Apple's revenue versus only 14% for Mac and iPad combined
• The market is questioning whether Apple can raise prices without hurting demand and margins
• Over half of iPhones shipped since 2022 cannot run the new AI Siri, fueling upgrade cycle expectations
• Installment plans may soften the blow of higher iPhone prices for consumers
• Tim Cook is expected to hand the CEO role to John Ternus on September 1st