AAPL Price Hikes, ASIC Market Overview, JBL, WFE Upside, Defending TSM

Research evidence excerpt

AAPL Price Hikes, ASIC Market Overview, JBL, WFE Upside, Defending TSM

Joshua Meyers - Specialist Sales - US TMT AC (1-617) 310 0767 North America Specialist Sales J P M O R G A Njoshua.meyers@jpmorgan.com

J.P. Morgan Securities LLC 18 June 2026

Joshua Meyers

+1 617 310 0767

joshua.meyers@jpmorgan.com

The big news today is Tim Cook’s admission to WSJ that AAPL will be raising product prices in the face of rising

component costs – particularly memory (links below in the news section). WSJ in its own analysis and citations of TechInsignts

speculates that iPhone prices could increase $200~300. On the one hand, an iPhone price hike of this magnitude strikes me as

unlikely, given AAPL’s multiple levers we’ve long discussed (optimizing configurations, mix, reducing non-memory costs/

vertical integration, service revenues); Samik did the math a few months ago and settled on the need for a ~$50 ASP increase,

impacting volumes a bit, but leaving revenue largely unchanged. On the other hand, the iPhone is – broadly speaking - a

consumer’s most heavily used device on a daily basis, and is often meaningfully subsidized, pointing to a measure of price

inelasticity. And, importantly, Apple Intelligence seems likely to necessitate a real upgrade cycle. Perhaps more importantly,

AAPL has not taken a price increase on the base model since 2020 when the iPhone 12 launched with 64GB of NAND for $799

(the 256GB iPhone 17 presently sells unlocked for $799), and it seems to me that consumers are, for better or worse, more primed

for tech goods inflation than at any time in recent memory. Obviously appreciate your feedback/pushback on this.

Elsewheree After yesterday’s big call on AVGO, Harlan Sur is out with an insightful ASIC Market Overview – sizing the