Apple Raises Price Target Amid Memory Shortages and Strategic Pricing Hikes
Apple reported strong quarterly results with revenue rising to $109.42 billion and EPS at $2.02, both exceeding expectations. Despite these positive numbers, the company faced challenges from soaring memory prices due to global shortages, which impacted its gross margins. Tariff refunds contributed about 11 cents per share to earnings. The stock fell nearly 6% in after-hours trading following concerns over supply constraints and pricing pressures. Apple responded by raising product prices on MacBooks and iPads earlier this month. Analysts remain optimistic long-term, citing the company's strong moat and bundling advantages despite near-term uncertainties around leadership changes and potential iPhone price hikes. Outgoing CEO Tim Cook highlighted progress in AI integration during a call with investors, including new features for Siri powered by Google’s Gemini model. The firm raised its 2027 price target to $340 from $300 due to anticipated improvements in Apple Intelligence capabilities.
