Morgan Stanley: Apple $Apple(AAPL.US)
> Anticipated iPhone Price Hike: Following recent price increases across non-iPhone products, Morgan Stanley now expects a $200 like-for-like starting price increase for the upcoming iPhone 18 lineup (particularly Pro models) in September, up from their previous estimate of $100–$150. > Protecting Against Inflation: Non-iPhone pricing actions taken on June 25, 2026, indicate that Apple is aggressively prioritizing gross margin preservation to offset sharply rising memory costs (DRAM and NAND inflation). > Incremental Margins: A $200 price hike on the iPhone 18 Pro (256GB) is estimated to keep its gross margin stable at ~40%. Similarly, the recent $100 increase on the iPad (2025) and $200 increase on the MacBook Air imply internal incremental gross margins of 40% and 27%, respectively. Consumer Demand & Inelasticity> Resilient Consumer Behavior: Supply chain checks and steady device lead times suggest that recent price hikes have not negatively affected consumer demand or modified Apple's manufacturing volume strategies. > Product Elasticity Breakdown: Historical analysis shows Apple's core products possess relatively inelastic demand: iPhone: The most inelastic product with an estimated elasticity of 0.2–0.5. Mac: Exhibiting an elasticity of 0.8. iPad: Demonstrating a roughly unitary price elasticity of 1.0.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
Post your comment
No Comments