2026-06-25XQuote

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A little more on the $AAPL price increases and the stock continuing to be down 5% today: It's all about expectations: last week when the story came out in the Journal about the upcoming price increases, most investors interpreted as a weighted average price increase of 5-10%, when in reality the Mac news points to a 15-20% bump. My take: this is a borderline jarring price increase when you compare it to expectations and it's understandable that investors have concerns. But in the end, the net effect should accelerate revenue growth over the next 4 quarters and expand gross margins.

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$AAPL trading down 5% on the news of an average Mac weighted price increase of about 17% (factoring in mix) feels like an overreaction on fears of demand destruction. My take is for the most part, demand for Apple products are inelastic, that is a large change in price has a smaller change in demand. Apples 1.5B consumers (my estimate) are locked into the ecosystem and more importantly get a ton of value out of the products even with the most recent price bump. Fun fact: Average life of a Mac is 4.5 years before it’s traded in which means a $200 increase adds $3.70 a month to the cost of ownership. Now in fairness people have to pay for that upfront, but rational buyers likely will be frustrated and buy anyway.
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