Asian markets plunge after Apple price hikes expose AI chip squeeze

Apple ↗ 0.51% raised prices on Macs, iPads, home devices, and the Vision Pro on Thursday, citing soaring memory and storage chip costs driven by the AI data center boom. The move sent Apple shares down 6.1% and helped drag the Nasdaq Composite lower, while Asian markets plunged on Friday as investors locked in profits from recent AI-fueled rallies.

Consumer Tech Pays for the AI Boom

Apple told Reuters it had "never seen a component price increase this much, this quickly," adding that it had "shielded our customers from these increases so far" but could no longer absorb the costs. The price increases hit broadly: the MacBook Air rose $200 to $1,299, the MacBook Pro jumped $300 to $1,999, the iPad Air climbed $150 to $749, and the Vision Pro increased by $200 to $3,699. Notably, the iPhone, Apple Watch, and AirPods were spared — for now.cbsnews+4

The hikes came hours after Micron Technology ↘ 2.80% reported blockbuster fiscal third-quarter earnings on Wednesday evening, with revenue surging more than fourfold year-over-year and shares soaring 15% on Thursday. The juxtaposition was stark: Micron added roughly $100 billion in market value on the day while Apple erased nearly $200 billion. Yahoo Finance noted that investors are "rewarding Micron for a global memory squeeze that has pushed pricing power back to suppliers" while Apple is "showing the other side of that squeeze".cnbc+2

Asian Markets Reel on Friday

The selloff deepened in Asia on Friday. Tokyo's Nikkei 225 fell as much as 5%, while Seoul's Kospi plunged as much as 8.4%, with both indexes hit by profit-taking in AI-related stocks after weeks of gains. Hong Kong's Hang Seng lost 1.9% and the Shanghai Composite slipped 2.1%. In Tokyo, major tech names including SoftBank Group, Advantest, and Tokyo Electron led declines.coinpedia+2

A Market Divided

The week exposed a growing rift within the tech sector. Chipmakers riding AI demand — including Micron, which has climbed more than 260% year-to-date — are thriving, while consumer electronics companies face margin pressure from the same forces. The S&P 500 finished Thursday nearly flat, unable to sustain an early rally powered by Micron's results as Apple's decline offset gains elsewhere. U.S. futures pointed lower early Friday as the volatility showed no sign of abating.bloomberg+2