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Keeping up with the prom joneses.

Apple, Microsoft Tumble On Abrupt Price Hikes Amid Chip-Crunch Contagion; Wall Street Responds

Summary:

• Memory Chip Crunch Crisis May Unleash Flood Of Consumer Device Companies Hiking Prices 
• Microsoft Hikes Prices on Xbox 
• Apple Hikes Prices on Macs and iPads

Wall Street Responds To Apple Hikes 

Apple shares were down 5.5% in late-afternoon trading, on track for their largest intraday decline in 15 months, as the stock tumbled into correction territory. Shares are now down about 14% from their early June peak near $317.

Investors appear spooked by Apple's rare overnight price hike, which boosted Mac computers by 15% to 20% and iPad prices by 15% to 25%.

An Apple spokesperson said that "the rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage" and that the company has "never seen a component price increase this much, this quickly."

JP Morgan equity research analyst Samik Chatterjee offered clients three takeaways from Apple's price hikes:

1. Higher-than-expected magnitude of price increases on announced SKUs could drive pressure on volume expectations for Macs and iPads, which have been able to deliver robust share gains recently with Apple delaying price increases relative to competition.

2. The magnitude of the price increases announced leads us to believe that our earlier expectations for a mid-single-digit increase in iPhone pricing in conjunction with an announced launch in September is likely to be too optimistic, although we still expect Apple to use additional levers to limit the magnitude of price increases on iPhones with greater volume and installed base implications relative to the price increase announced today

3. The company continues to balance market share, revenue growth, and profitability objectives, which should reassure investors around the resilience of earnings growth drivers.

Price Hikes:

Wedbush analyst Dan Ives noted, "While Apple is well known for using its huge memory and storage purchases as leverage to secure low prices, the current memory price increases have forced Apple's hand to raise prices, but we believe the company is in a strong position to increase prices without sacrificing hardware performance and risking increasing customer churn given the company's increasing focus on the higher-end consumer." 

UBS analyst David Vogt also responded to the price hikes, telling clients that while no new iPhone price adjustments were announced on Thursday, there is reason to believe that "iPhone price increases are likely in the fall."

Vogt explained:

We expect iPhone price increases in the fall but likely flows in FY27 ests In conjunction with the expected launch of new iPhones in the fall, we expect Apple to lift effective prices anywhere from $50 to $100 along with possibly changing specs to offset the share rise in DRAM and NAND. For a typical $1,000 iPhone, memory was around $50 to $60 or a mid-single digit % of the BOM before the sharp rise in memory prices. With normalized/blended iPhone gross margins in the low 40s% range prior to recent memory dynamics, memory related BOM depending on the nature of LTAs could now be ~20% implying a broad based price increase approaching $100 could be an offset, hence we forecast 'Product' gross margin stability in FY27 in the 37-38% range.

Beyond Apple's price hikes on Thursday, Microsoft also raised prices on Xbox consoles, suggesting the memory-chip squeeze can not be contained by big tech consumer device companies. MSFT shares were down around 2.4% in late afternoon trading. 

We expect more device makers heavily exposed to memory chip price volatility to adjust prices in the coming weeks and months, especially given the chip crunch will persist through year's end.

Apple Price Shock: Macs And iPads Jump $200 Or More As Memory Crisis Worsens

Readers were warned as early as late January to front-run the coming memory shortage by purchasing their favorite electronics, whether PCs, laptops, TVs, smartphones, or anything else dependent on high-end memory chips, as unprecedented data-center demand was already beginning to emerge.

Fast forward nearly five months, and just two weeks after Apple CEO Tim Cook warned that "price increases are unavoidable" for laptops and other devices, a Wall Street Journal report has confirmed that those hikes have now been passed along, potentially delivering sticker shock to customers.

Here's what happened earlier: The Apple Online Store briefly went down, and when it came back online, prices for Mac computers jumped 15% to 20%, while iPad prices increased 15% to 25%.

The company briefly took down its Apple Online Store early this morning as it typically does when announcing new products. When it came back online, the price tags for Mac computers rose roughly 15% to 20% and iPad prices rose 15% to 25%. Among the price increases, the base MacBook Air rose $200 to $1,299; the base MacBook Pro increased $300 to $1,999; the entry-level MacBook Neo increased $100 to $699. The iPad Air increased $150 to $749 and the iPad Pro increased $200 to $1,199. -WSJ

Vision Pro became even more unaffordable.

*APPLE RAISES VISION PRO HEADSET PRICE TO $3,699 FROM $3,499

*APPLE HOMEPOD NOW $349, HOMEPOD MINI IS $129, APPLE TV TO $199

— zerohedge (@zerohedge) June 25, 2026

However, iPhone prices remained unchanged, but the company told the outlet in a statement that additional price hikes could be on the way.

"We have now reached a point where we need to begin raising prices," Apple said in the statement. "We have never seen a component price increase this much, this quickly."

An Apple spokesperson placed the blame on the "rapid expansion of AI data centers, which has created an extraordinary surge in demand for memory and storage," and this is why component prices surged.

Earlier this month, Cook told WSJ that price increases had become "unavoidable" because of higher component costs, adding, "There's less supply at a time when consumers want devices, and the memory guys are passing along huge price increases."

Apple has historically revealed price hikes with new launches of iPhones, iPads, and other devices, making this overnight price hike extraordinarily rare.  

The high-end chip market is dominated by US-based Micron and South Korea's SK Hynix and Samsung, which have all seen massive demand for high-bandwidth memory from AI "hyperscalers" such as Google, Meta, and Amazon.

Apple's price hikes come hours after Micron delivered blowout quarterly earnings, touting gross profit margins that topped 80%. Shares soared nearly 18% in premarket trading.

Micron executives told investors that "tight conditions" will persist beyond 2027 and that only suggests further price hikes are coming not just for Apple but also for other major big tech firms that sell devices.

Micron Chief Business Officer Sumit Sadana said in a WSJ interview last night that "a couple of the customers who were being very aggressive with pricing at that time were not constructive," without naming Apple...

Sadana noted, "A lot of the industry investments got shut down in 2023 because of really poor pricing and really poor margins."

A recent Morgan Stanley note found that memory prices have climbed sixfold over the past year, with new manufacturing capacity likely to take years to build and ramp up.

The iPhone price hike may be unavoidable: JPMorgan analysts estimate DRAM and NAND could jump from roughly 10% to 15% of an iPhone's total component cost today to more than 45% by 2027.

Memory price spikes are already showing up in the Producer Price Index for semiconductor and other electronic component manufacturing.

At what point does Trump start raging at soaring memory prices

PPI Electronic Components is pulling entire core index higher pic.twitter.com/v9ufHmx0gG

— zerohedge (@zerohedge) June 11, 2026

... and at what point does President Trump start raging at memory prices, just as his administration has successfully sent oil prices crashing by entering a diplomatic phase with Tehran to secure a permanent peace deal?

Tyler Durden Thu, 06/25/2026 - 14:50

Your spare change could soon hold a piece of rare history.

Jaylen Brown has been passed over yet again.

"The lack of any actual safety policy, or even concern frankly, is the very definition of capricious decision making, as well as a stunning offense to public trust," the lawsuit said.

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Top JPMorgan DEI Executive Identified And Fired In NYC Trash Can Viral Video

Authored by Jonathan Turley via jonathanturley.org,

The viral video of a woman stealing a trash can and dumping its contents after the Knicks' victory has led to her termination. Angie Baez, 40, was the "Executive Director of Community and Industry Engagement for Card and Connected Commerce" for JPMorgan Chase.

She was shown in a video dumping trash on the ground to steal a Knicks-colored trash can after the NBA Finals. JPMorgan apparently concluded that this was neither the publicity nor the type of Community Engagement they are seeking.

The videotape of the incident shocked many by Baez's cavalier attitude, not just in stealing the trash can but in dumping out the garbage.

        View this post on Instagram                      

A post shared by New York Post Sports (@nypostsports)

The New York Post later reported that the woman had been identified as Angie Baez. She previously served as "Executive Director of Diversity, Equity, and Inclusion" at The Infatuation, a website that reviews restaurants and neighborhood activities.

Once she was identified, JPMorgan Chase issued a statement, "This employee is no longer with the company."

We have often discussed the difficult questions surrounding the termination of employees for speech in their private lives that is considered harmful to an employer. Whether it is conduct or speech, private companies often reserve the right to terminate any employee who brings negative attention to the company, even when they do not reference or display an association with the company. In today's web-savvy world, it does not take long for motivated individuals to learn the identity and associations of public figures.

We have seen companies fire employees for drunken displays and abusing others in viral videotapes. There is little recourse in such cases, particularly for at-will employees.

In the case of Baez, she falls into the same category as Adam Smith (not the economist), who made a fool out of himself at a Chick-fil-A.

Ultimately, Baez was not even allowed to keep the trash can. She was also given a $75 fine for littering and a $100 fine for impeding Department of Sanitation operations. That proved to be an expensive memento for the Knicks victory.

Tyler Durden Thu, 06/25/2026 - 14:40

Marlins announcer Tommy Hutton was upset with fans for not celebrating Sandy Alcantara’s record-breaking strikeout before it was announced on the scoreboard. Alcantara became the Marlins’ all-time strikeout leader during Tuesday night’s 6-4 win over the Rangers. “The problem I have, most of the fans here tonight should know that without having to look at the scoreboard,”...

The classified Class II recall, means it "involves a health hazard situation where there is a remote probability of adverse health consequences from use of the product," according to the FSIS website.

Prime Day's kicking Ninja's prices while they're down.

The Wall Street Journal reported that both Trump and Ellison viewed CNN as biased against conservatives and the administration.

Trump Cuts Off NATO's Mark Rutte In Oval Office After Sitting Out Iran War

As expected, President Trump took the opportunity to chastise NATO for its lack of participation in the Iran war while hosting the alliance's Secretary General Mark Rutte at the White House.

"We didn’t need help on this at all. We demolished them in literally the first week," Trump said of Iran before reporters, while seated across from Rutte. That's when the president said, "But it would have been nice if they would have said, ‘We’d like to help.’ We didn’t even need it, but it would have been nice if they said that."

via Associated Press

Throughout the conflict Trump has openly mused about pulling the United States out of the military alliance - or also at least withholding significant defense funding, and suggested in the Wednesday meeting that he'd be discussing the issue with Rutte behind closed doors.

"We’re going to be discussing what took place, and we’ll see what happens," he said.

Despite general negativity heaped on NATO's lax response to the Hormuz crisis and Iran campaign, Trump still offered a little praise of Rutte - who has long been generally supportive of the Trump White House.

Rutte in turn hailed Trump as "the leader of the free world" and stressed "I really want to make clear how important it is what you are doing on Iran."

"This is, first of all, about the nuclear capability Iran was basically getting its hands on - and it would have been a threat to the region. It would’ve been a threat to the whole world. This is a country that is exporting chaos, is exporting terrorism," Rutte described, without providing evidence of these series of claims.

Rutte tried a bit of flattery, which didn't exactly calm Trump's verbal attacks on NATO:

"I know there have been isolated cases about which you are really disappointed, but generally speaking your European allies have been there," Rutte said.

Trump appeared unconvinced, at times interrupting Rutte ​to disagree with him, though he praised his leadership.

"You really have done a good job, and I think if anybody else were in that position, we wouldn't even be meeting today, to be honest with you, because we were let down," Trump said.

Trump looks like he's barely able to stay awake while Rutte tries to butter him up pic.twitter.com/pjEOjBgvWr

— Aaron Rupar (@atrupar) June 24, 2026

Trump wasn't willing to let Rutte dodge:

“I know there have been debates about whether your allies in Europe were with you enough. I just want to say one thing,” Rutte said.

“They weren’t,” Trump interjected with a two-word comeback.

“Let me say one thing,” Rutte pleaded. “I know you think that [and] your irritation about that, but when you look at the numbers, 4,000- 5,000 US planes [took] off from bases in Europe in the six weeks this war took place.”

With props in hand, Rutte unveiled what he's calling the "Trump trillion"...

WATCH: NATO Secretary General Mark Rutte unveils what he calls the "Trump trillion" as he credits President Trump with helping push European allies to boost defense spending.

Rutte said Europe and Canada have added roughly $1.2 trillion in defense spending since Trump first… pic.twitter.com/IpS5RhNgEs

— Fox News (@FoxNews) June 24, 2026

In a couple weeks, July 7, is when the big annual NATO summit is slated to begin in Ankara, Turkey. The timing of Turkey hosting the gathering is interesting, given the country has been opposed to the US attacks on Iran, and has become a top regional enemy of Israel, with the two sides having issued heated and threated rhetoric for months.

Turkey is another US ally which is not going to lift a finger to assist the US in the Gulf area, but in terms of the pending peace deal with Tehran, and the prior signing of the Memorandum of Understanding (MoU), there is broad support.

Tyler Durden Thu, 06/25/2026 - 14:20

You Narcan do anything you set your mind to.

US Sees Record Q1 2026 Energy Storage Installations

By Brian Martucci of UtilityDive

The United States added 3.3 GW/8.4 GWh of energy storage in the first quarter of 2026, according to the latest figures from Wood Mackenzie and the American Clean Power Association. All three segments — utility-scale, residential and commercial/community/industrial — notched records for the seasonally slow first quarter.

The London-based energy consultancy and U.S. clean energy trade association see cumulative installed U.S. energy storage capacity reaching 200 GW/655 GWh by 2031, a four-fold increase from today. The forecast is consistent with a separate outlook from the U.S. Energy Information Administration that sees U.S. energy storage capacity doubling by the end of 2027.

The quarterly update to Wood Mackenzie/ACP’s U.S. Energy Storage Monitor expects favorable tax policy and large-load demand for colocated and behind-the-meter storage to lift installation volumes over the next several years, as U.S. battery manufacturing capacity grows.

Both Wood Mackenzie/ACP’s Q1 2026 U.S. Energy Storage Monitor and the EIA’s June 2026 Short-Term Energy Outlook hint at strong near- and medium-term fundamentals for the U.S. battery energy storage industry.

The EIA expects U.S. electricity consumption to rise by 76 billion kWh in 2026 and 126 billion kWh in 2027, driven largely by increased sales to commercial, industrial and transportation users. 

A battery energy storage facility. The United States added 3.3 GW/8.4 GWh of energy storage in the first quarter of 2026, according to a June report from Wood Mackenzie and the American Clean Power Association

In 2026, above-average summer temperatures across much of the U.S. will boost electricity demand to the benefit of renewables, which the EIA expects to “almost entirely” meet the increase in demand. Solar generation could rise 19% and wind generation 10% this year, the EIA said.

Solar and battery deployments, often paired at the same site, continue to dominate new generation deployments in the U.S. Solar and storage accounted for 91% of nameplate generating capacity added in the first quarter of 2026, and nearly 50% of new residential solar systems were paired with batteries during the same period, according to a June 10 report from the U.S. Solar Energy Industries Association.

One key factor behind the U.S. battery boom is the preservation of the federal investment tax credit for qualifying energy storage systems, Wood Mackenzie and ACP said. The Inflation Reduction Act first authorized those credits, which can offset 30% or more of deployment costs, in 2022. Last year, the One Big Beautiful Bill Act preserved the energy storage ITC even as it accelerated the expiration of corresponding investment and production tax credits for wind and solar systems.

WoodMac/ACP expect utility-scale storage to claim 85% of capacity additions through 2031 as large-load customers ink colocation and capacity contracts with energy storage providers. 

The commercial/community/industrial segment will grow 26% through 2031 amid strong behind-the-meter demand in California and at least 215 MW of community-scale storage projects in the works nationally, WoodMac and ACP said. And after a shallow contraction in 2026 following a rush of installations ahead of the expiration of the Section 25D tax credit at the end of last year, the residential storage segment will expand at a 12% average annual pace over the next four years, the organizations said.

Spurred by tax-code changes that benefit energy storage systems with more U.S.-sourced content, domestic battery manufacturing is ramping up to meet expected demand. 

The Energy Storage Coalition, an industry group, said in March that U.S. factories now have enough capacity to supply 100% of domestic demand. Some of that capacity is coming from manufacturers that previously planned to make electric vehicle batteries in the United States. Ford and General Motors, for example, both announced significant energy storage investments this year.

Tyler Durden Thu, 06/25/2026 - 14:00

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