Apple’s decision to raise prices on some Macs and iPads sent its shares lower on Thursday. The stock dropped nearly 5% during morning trading after the company announced the increases. Despite the decline, most Wall Street analysts kept a positive outlook on the technology giant.
The price increases come as memory costs continue to rise across the industry. Strong earnings from Micron recently reinforced expectations that demand for DRAM and NAND chips will remain high, especially as artificial intelligence drives the need for more computing power.
Analysts Focus on Profit Protection
Investment firms largely viewed Apple’s move as an effort to defend its profit margins rather than a sign of weakness.
Evercore ISI maintained its “Outperform” rating and kept its $365 price target for Apple shares. Analyst Amit Daryanani noted that Apple rarely changes hardware prices in the middle of a product cycle. However, he said the company now faces much higher memory costs than it did a year ago.
The firm believes the price increases will help Apple offset those expenses. It also warned that higher prices could slightly slow demand for Macs and iPads.
Confidence in Customer Loyalty
Wedbush analyst Dan Ives also kept his “Outperform” rating and maintained a $400 price target. He argued that Apple can increase prices without losing many customers because its users continue to buy premium products.
Ives added that rising memory and storage costs have made higher prices difficult to avoid. He also highlighted Apple’s semiconductor partnership with Intel, which could help the company secure more chip supplies in the future.
Investors Watching the Next Move
Although Apple’s stock fell sharply, analysts did not change their long-term expectations. Instead, they focused on the company’s ability to preserve profitability during a period of rising component costs.
The next major event for investors may arrive in September when Apple is expected to introduce its new iPhone lineup. Until then, Wall Street appears willing to give the company the benefit of the doubt as it navigates higher production expenses and changing market conditions.
