Apple loses $500 billion in market value as memory‑chip shortage drives price hikes
Apple’s shares fell nearly 10 % in a single trading day, erasing about $500 billion of market value – the largest one‑day drop in the company’s history. The slide followed a weaker‑than‑expected earnings forecast and CEO Tim Cook’s warning of “a century‑flood” of memory‑chip price increases that are straining Apple’s supply chain.
Analysts link the loss to severe shortages of DRAM and other components needed for the iPhone and Mac lines. Qualcomm also warned that Apple’s revenue will decline faster than expected because of the same component constraints. The shortage is expected to push the price of the upcoming iPhone 18 Pro up by $250‑$300, according to analysts Jeff Pu and others.
Despite the pressure, Apple still captured a record 49 % share of global smartphone revenue in Q2 2026, outpacing Android rivals that have begun raising prices. The company has so far kept iPhone prices unchanged, but the mounting component costs suggest a price increase is likely before the September launch.
Entities: Apple Inc. · Cristiano Amon · Jeff Pu · Klarna · Qualcomm · TSMC · Tim Cook · iPhone 18 Pro
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] The price increase is driven by higher costs of the 2 nm A20 chip produced by TSMC and new wafer‑level multi‑chip module packaging. (Analyst Jeff Pu (GF Securities))
- [○ 1 SOURCE] Tim Cook will step down as Apple CEO in September, to be succeeded by John Ternus. (Tim Cook, earnings call)
- [○ 1 SOURCE] Apple raised prices of several devices in June due to exploding memory‑chip costs. (Apple announcement)
- [○ 1 SOURCE] CEO Tim Cook described a “century flood” of memory‑chip price increases that could constrain supply of iPhones and Macs. (Tim Cook, Apple earnings call on 30 July)
- [○ 1 SOURCE] Apple launched a leasing program called “Apple Upgrade” in the United States, allowing customers to lease iPhones, Macs, iPads and Apple Watches. (Apple press release)
- [○ 1 SOURCE] The leasing program is offered in partnership with Klarna and replaces the previous iPhone Upgrade program. (Apple press release)
- [○ 1 SOURCE] The DRAM memory‑chip market is dominated by Micron, SK Hynix and Samsung. (Tim Cook, earnings call)
- [○ 1 SOURCE] The iPhone 18 Pro base price could start at $1,399 in the United States, $250‑$300 higher than the iPhone 17 Pro. (Analyst Jeff Pu (GF Securities) via MacRumors)