Apple’s margins will be pressured as memory chip prices continue to rise, according to Phillip Capital. The financial firm downgraded the iPhone maker to reduce from neutral while maintaining its $290 price target in a Monday note to clients, indicating a 4.4% decrease from Monday’s close. Analyst Helena Wang said that while demand for products such as the iPhone 17 and MacBooks remains strong, the sharp rise in memory prices will undercut that momentum. “Memory inflation is becoming a major margin headwind. Management expects memory prices to continue increasing in 4Q26 and beyond. AAPL has partially offset the impact through lower-cost carry-in inventory, favourable product mix and lower non-memory component costs, yet these benefits are expected to diminish over time. DRAM market is effectively dominated by just three suppliers, giving AAPL little sourcing flexibility,” Wang wrote. AAPL YTD line Apple YTD Apple fell nearly 10% after reporting earnings on Thursday. Despite beating analyst earnings and revenue estimates, the company issued weak guidance for the current period due to the global chip crunch. The tech giant has already increased the prices on its iPads and Mac models , and some analysts expect iPhones to face a price hike in the near future. Wang also noted that Apple Intelligence has not yet given consumers a clear reason to upgrade. In addition, regulatory hurdles in Europe and China—which generate 44% of Apple’s revenue—”could continue to limit the near-term monetisation of Apple Intelligence”. However, Wall Street’s consensus remains optimistic. According to LSEG, 32 analysts gave the company buy or strong buy rating, 13 analysts rated it as hold, and 3 analysts gave the stock an underperform.
