Apple shares fell 6.2% on Thursday after the company raised Mac prices by up to 20% and iPad prices by up to 25% to offset surging memory and storage chip costs, which CEO Tim Cook described as a 'hundred-year flood.' The price increases, ranging from $100 to $300 on affected products, left iPhone, Apple Watch, and AirPods pricing unchanged. In its fiscal second quarter, Apple reported revenue of $111.18 billion, up 16.6% year over year, with diluted earnings per share of $2.01 beating the $1.94 consensus, marking its eighth consecutive earnings beat. Services revenue reached a record $30.98 billion, and the board authorized a new $100 billion buyback while raising the dividend 4% to $0.27 per share. Wall Street maintains a consensus price target of $314.42, with 30 Buy ratings, 15 Holds, and 3 Sells, though some investors remain cautious about potential demand destruction from the higher prices.
Apple Inc.Apple raised Mac and iPad prices by up to 20-25% to offset rising chip costs, causing a 6% drop.
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