Apple downgraded as memory chip prices squeeze margins

Phillip Capital downgraded Apple to reduce from neutral, citing rising memory chip prices as a major margin threat, while maintaining a $290 price target that implies a 4.4% decline from Monday's close. Analyst Helena Wang noted strong demand for iPhone 17 and MacBooks, but said memory inflation will undercut momentum, with prices expected to rise through 4Q26 and beyond. She added that DRAM's three-supplier dominance limits Apple's sourcing flexibility, and benefits from inventory and product mix will diminish. Apple fell nearly 10% after Thursday's earnings despite beating estimates, due to weak guidance from the chip crunch. The company has raised iPad and Mac prices, with iPhone hikes possible, while Apple Intelligence faces regulatory hurdles in Europe and China, though most Wall Street analysts remain bullish.