Apple raises prices on Macs and iPads because memory costs are surging — memory
Thesis
Apple's stock got hit because they had to raise consumer prices to offset higher memory costs from suppliers like Micron. While this is bad for Apple's margins, it is extremely bullish confirmation for the memory chip makers — they are successfully passing on massive price increases to even the most powerful company in the world. When you combine Apple's price hike news with Micron's blowout earnings and the $400 billion AI chip rally, it shows memory companies are in a sustained pricing power cycle.
Strategy approach
Build a long strategy on MU and WDC that enters when a major consumer electronics company (like Apple) announces price hikes attributed to rising memory costs, combined with memory chip stocks having risen >10% in the prior week on earnings. Hold for 21 days with a 7% trailing stop.