Apple Inc. (AAPL.US) Rarely Raises Prices May Suppress Mac/iPad Demand Evercore Still Maintains "outperform" and Sees it Going to $365

Apple Inc. (AAPL.US) announced on Thursday that it will raise prices for most of its hardware products, sparking concerns about the outlook for consumer electronics demand in the market. Evercore analysts believe that this price increase reflects the increasing pressure on Apple Inc.'s profit margins due to rising memory costs. Although the price increase will help maintain profitability, it may also have some impact on demand for Mac and iPad products. Evercore analyst Amit Daryanani stated in a recent report that this price increase sends a clear signal that the impact of rising memory prices is faster and more pronounced than the market had previously expected, and even Apple Inc. is finding it difficult to fully absorb cost pressures. He pointed out that it is not common for Apple Inc. to raise prices midway through a product's lifecycle, so this price hike is somewhat unique. "This price increase helps protect the company's gross margin, but raising prices midway through a product's sales cycle is very rare for Apple Inc. and increases the risk of suppressing demand for Mac and iPad products." However, he believes that Apple Inc. did not raise prices for iPhones this time, so the short-term impact is relatively limited, and the pricing strategy for the upcoming new generation of iPhones in the fall will be the next important focus for the market. Despite this, Daryanani still maintains an "outperform" rating on Apple Inc. stock and a target price of $365. According to information released by Apple Inc., this price increase affects the vast majority of its Mac, iPad, and smart home products. Among them, the starting price for the MacBook Neo has been raised from $599 to $699; the starting price for the iPad Pro has been increased from $999 to $1199; the iPad Air has increased from $599 to $749; and the starting price for the MacBook Pro has been raised from $1699 to $1999. In addition, the price of the HomePod has been raised from $299 to $349, the price of the HomePod mini has been raised from $99 to $129, the Apple TV has been raised from $149 to $199, and the price of the Vision Pro headset has been raised from $3499 to $3699. The high-end version of the Mac mini with the M4 Pro chip has also seen its price increase from $1399 to $1599. In comparison, Apple Inc. has not adjusted the prices of its iPhone product line this time. However, it is widely expected that the company will adjust prices when it launches the new generation of iPhones in the fall. In fact, Apple Inc. had already begun gradually raising prices for some products. In May of this year, the company stopped selling the M4 Mac mini version with 256GB of storage space, effectively raising the starting price of the Mac mini from $599 to $799. In addition, the entry-level iPad, iMac, and Mac Studio had already undergone price adjustments. Evercore believes that Apple Inc.'s decision to raise product prices this time reflects the current rise in electronic component costs, especially the rising prices of memory, which are eroding hardware manufacturers' profit margins. Analysts point out that in recent years, the continued growth in demand for AI servers has driven continuous increases in high-bandwidth memory (HBM) and storage chips such as DRAM and NAND flash, putting cost pressures on many consumer electronics manufacturers. However, compared to other products, Apple Inc.'s decision to temporarily postpone adjusting iPhone prices also shows the company's cautious attitude towards the demand in the smartphone market, hoping to avoid affecting the sales performance of its core products. In response to the price hike news, Apple Inc.'s stock price fell by over 5% on Thursday. Market observers believe that whether Apple Inc. can smoothly absorb the cost increases through price hikes while maintaining stable end demand will be a critical factor affecting the company's performance in the second half of the year, and the pricing strategy for the new generation of iPhones in the fall will also be a focus of investor attention.