Apple Stock Slumps Amid Unprecedented Price Hikes, Demand Concerns

Apple's stock price is on track to end the week down by 7.5%, its worst since February this year, due to recent product price hikes. The increases, ranging from 15% to 25% for Macs, iPads, and accessories, are seen as an effort to protect margins against record-high memory cost inflation.

Morgan Stanley notes that these hikes are unprecedented in scale, with no comparable price increases over the last 15 years. Despite this, Apple's ecosystem lock-in and demand resilience could continue to provide revenue and earnings growth, according to the investment bank.

Wedbush's Dan Ives maintains a bullish outlook on AAPL, stating that Apple remains well-positioned to raise product prices without materially hurting demand or increasing customer churn. The company is focused on premium devices and higher-end consumers.