Morgan Stanley: Behind Apple’s across-the-board price hikes, it’s essentially hedging against a surge in chip costs

Deep Tide TechFlow message, according to Chaoxiang Research, Morgan Stanley’s latest report on Apple released on July 14, 2026 shows that Apple raised prices on Mac, iPad, and accessories by 15%–54% within two weeks. The deep driver is forced cost hedging rather than simple profit squeezing. DRAM and NAND chip costs are expected to rise by 190% and 280%, respectively, in 2027. The chip cost for an iPad will increase from $51 to $144; just this item alone can consume 30%–40% of gross margin.

Morgan Stanley predicts Apple will raise iPhone prices by $200 in September (up from the prior expectation of $100–$150) as a necessary move to cope with cost pressure. Even with a $200 increase, most of the incremental gross profit on iPhone is offset by rising costs. Morgan Stanley’s target price is $360, up 34.4% from the current $317, but the implied risk is whether consumers’ tolerance for consecutive price hikes can last.