Apple’s stock is under pressure as investors grapple with the impact of sharply rising memory chip prices on the company’s profitability. The iPhone giant’s upcoming earnings report, due after market close on Thursday, should offer the first clear insights into the extent of the issue.
Since peaking on December 2, Apple shares have declined more than 10% — making it the weakest performer among the Magnificent Seven tech stocks and the single largest point drag on the S&P 500 over that period. The stock has just wrapped up its eighth straight weekly loss, a streak not surpassed since 1993.
Ryan Vlastelica for Bloomberg News:
The selloff is being driven at least in part by fears that a spike in costs for memory chips, a critical component of smartphones and tablets, will pressure Apple’s margins and earnings. The issue has overshadowed encouraging news on its artificial intelligence plans, and it’s expected to get more pronounced in the second half of 2026, when supply contracts expire. Memory prices are projected to remain elevated for the foreseeable future amid brisk demand.
“We’ve seen Apple face pressure from memory prices before, but never at this unprecedented rate,” said Shaon Baqui, senior tech research analyst at Janus Henderson, which owns a sizable stake in the shares. “The market is clearly uncertain and concerned that we’ll see more bad news on the memory front.”
Since the end of September, an index of spot prices for dynamic random-access memory, or DRAM, chips is up almost 400%, reflecting the soaring demand as more AI data centers get built.
Apple’s size means it has a lot of sway with suppliers and some ability to pass higher costs onto consumers, especially as demand for pricier high-end models continues to hold up. But the steep price for memory leaves it with few good options. Memory represents between 10% and 20% of the cost of building a smartphone, according to technology research firm IDC, which called the rise in memory prices a “crisis” for hardware companies.
MacDailyNews Take: As is often the case, it’s all about the guidance, specifically in regard to Q226 margins.
MacDailyNews Note: As usual, we’ll bring you Apple’s results as soon as they are released, right around 1:30 p.m. PT / 4:30 p.m. ET on Thursday, January 29, 2026 and then follow with live notes from Apple’s conference call at 2:00 p.m. PT / 5:00 p.m. ET.
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