Asian technology stocks slumped after Apple raised prices for its products, stoking concern that rising component costs will curb device demand and potentially slow the memory chip rally that has powered much of the AI trade. The selloff rippled across the region, hitting semiconductor and hardware makers particularly hard.
Apple's price increases come amid a broader surge in memory chip costs driven by AI-related demand. Investors now worry that higher end-product prices could dampen consumer appetite, threatening the very boom that has lifted stocks like Samsung and SK Hynix to multi-year highs.
Memory chip stocks led the decline. South Korea's KOSPI index fell more than 2%, with Samsung Electronics dropping 3% and SK Hynix losing 4%. Other Asian markets, including Japan and Taiwan, also saw significant losses in tech-heavy indices.
The development introduces a potential headwind for the AI trade, which has increasingly relied on memory chip momentum. If price hikes stifle demand, chipmakers could face inventory buildup and margin pressure later this year.
However, some analysts argue that AI demand remains structurally robust and that Apple's pricing power reflects strong consumer spending, not a broader downturn. The selloff may be an overreaction to short-term cost dynamics.