Apple Sinks 6% in a Memory-Cost “Hundred-Year Flood” That Has Micron Surging

Shares of Apple (NASDAQ:AAPL) are down 6% successful midday trading connected Thursday, sitting adjacent $274 aft closing the anterior league astatine $293. The descent is Apple stock's sharpest single-day determination successful months and stands retired against its 38% one-year gain.

The trigger came consecutive from the C-suite. Apple announced terms increases connected MacBooks and iPads, and CEO Tim Cook tied the determination squarely to soaring representation and retention costs driven by AI information halfway buildouts. Notably, Apple near iPhone pricing untouched.

The symptom is not evenly dispersed crossed the proviso chain. Micron Technology (NASDAQ:MU) banal is up 16% astatine the aforesaid time, riding the other broadside of the aforesaid representation crunch aft a blowout net report.

Cook Calls It a "Hundred-Year Flood"

The framing came consecutive from Apple's main executive. "This is simply a hundred-year flood. I've ne'er seen thing similar it successful immoderate country successful implicit 40 years," Cook stated, calling the terms increases "unavoidable" and noting that Apple had tried to shield customers but "the concern has go unsustainable."

The dollar interaction connected Apple's hardware lineup is notable. The MacBook Neo moves from $599 to $699, the MacBook Air from $1,099 to $1,299, and the 14-inch MacBook Pro from $1,699 to $1,999 (with the 16-inch from $2,699 to $2,999). On tablets, the iPad Air 11-inch jumps from $599 to $749 and the 13-inch iPad Pro from $1,299 to $1,499.

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Cook besides near the doorway unfastened to further hikes connected "a fig of products," and indicated Apple is consenting to deploy currency reserves to assistance boost representation supply, though it volition not physique its ain representation facilities. He adjacent suggested U.S. policymakers see easing restrictions connected moving with Chinese representation suppliers.

That past constituent is antithetic for Apple. It hints astatine however acute the institution views the proviso situation, and however fewer near-term levers it has to propulsion connected constituent cost.