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Apple's Mac, iPad Price Hikes Won't Change Product Margin Outlook, UBS Says

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Apple's Mac, iPad Price Hikes Won't Change Product Margin Outlook, UBS Says

Apple's (AAPL) price increases for MacBook and iPad are not expected to affect the company's product margins in the near term, UBS Securities said in a note emailed Friday.

The price increases range from $100 to $300 for MacBooks and $150 to $200 for iPads. IPhone prices remained unchanged.

Prior to these price adjustments, the brokerage projected Apple's gross margin for the product division to slide sequentially to 36.4% in the June quarter and 35.9% in the next one, compared with 38.7% reported in the March quarter.

"Given iPhone revenue should account for (about 80%) of 'product' revenue over the next 3-4 quarters, we don't expect a change in the margin outlook in the near-term from Macs and iPads until iPhone price increases or configurations are confirmed later in (2026)," UBS analysts David Vogt and Andrew Spinola said.

UBS expects Apple to increase iPhone prices by $50 to $100 this fall amid soaring memory costs. That should stabilize the company's fiscal 2027 product gross margins between 37% and 38%.

Apple is unlikely to lose customers as a result of changes to MacBook and iPad prices, Wedbush Securities said Thursday.

The company's fiscal second-quarter results exceeded Wall Street's estimates at the end of April, driven by an iPhone revenue beat.

Apple's shares edged up 1.1% in Friday trading, after closing down 6.1% a day earlier. The stock is up 2.3% so far this year.

Price: $278.57, Change: $+3.42, Percent Change: +1.24%

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