Apple Hikes Mac and iPad Prices 15%-25%, Shares Fall Over 6%
AAPL•Apple raised prices on several MacBook and iPad models by 15% to 25%, with the entry-level MacBook Neo now $699 (up from $599) and the iPad Pro 256GB Wi-Fi version at $1,199 (up from $999). Shares declined over 6% on Thursday and are on track for a 7.5% weekly drop as investors weigh demand risks and margin support.
1. Product Price Hikes
Apple increased prices by 15% to 25% on key devices, moving the entry-level MacBook Neo from $599 to $699, the MacBook Air 512GB to $1,299, and the iPad Pro 256GB Wi-Fi model from $999 to $1,199.
2. Market Reaction
The stock fell more than 6% on the day of the price announcement and is poised for a 7.5% weekly decline, marking its worst weekly performance since February as investors gauge potential sales slowdowns.
3. Analyst Forecasts
Morgan Stanley maintained an Overweight rating with a $360 price target, citing ecosystem resilience, while Wedbush upheld an Outperform stance and a $400 target, noting customer loyalty and financing programs.
4. Demand and Margin Outlook
The hikes aim to offset memory chip cost inflation and bolster gross margins, but investors are assessing whether higher prices could dampen premium device demand and slow unit growth.
