Apple’s Price Hikes Are Coming — Traders Need to Know Why

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2:22Investing involves risk including potential loss of principal LPL Financial LLC member FINRA SIPC. we glossed over a little bit. I think maybe we touched on it for a second. The fact that they are going to increase their prices for the GPUs by 15%. Obviously, direct correlation to the memory story. We talk about memory so much. Thoughts around that? Because we saw memory take a bit of a hit today. Outlook on the memory story. You give your thoughts. I got mine for sure. I think it's smart to increase the prices. It's too valuable. and now for the first time in a long time, the memory sector is in pole position to make the decision.

2:59So much so, as we alluded to, Apple doesn't even get to dictate price anymore. The memory company that used to be the supplier was looked at as the little brother and now we take pole position because you didn't invest your free cash flow or operation cash flow to buy, like not to beat up on Apple because I love everyone at HQ. But look at what they could have potentially bought open ai anthropic micron sand disk because it was spun off hell intel you didn't do any of it so um the costs are always going to be passed off to the consumer and everyone who keeps calling for the death of the memory tray in one frame or another i'm going to keep saying it you are only saying that because you didn't get into it same with a video like when i called a video and it took off they're like oh it has remnants of him ron i'm like yeah because you didn't invest in it that's the only reason why so do i see a uh a potential for it to pull back maybe to 8 30 if something bad happens or 809 and we're sure do i think we'll get back to 1200 within 12 months for sure for sure there's no money in being a a perma bear what are your thoughts i think i think two things uh happened this weekend um that made me i mean i'm already bullish i think everybody knows that i've been in the story for so long that yeah of course i'm a bull when it comes to the memory sector um i think the tim uh tim cook quote was pretty telling um in terms of them having to figure out if they're going to try to use uh chinese memory products to help you know offset some costs and him conceding and saying you know macron is an american leader in memory and we're going to continue to support that i think yeah but how do we even do that like we're fighting a geopolitical technological war the fact that he was testing it was just like alarming in itself like bro what yeah i mean the administration i couldn't see them allowing it anyway but they're not yeah they're not right that call that's the first sign and then the next day jensen saying we're going to increase our gpu price by 15 is also another bullish flag because they could have said, hey, you know, maybe we'll try to create infrastructure that they've done in other sectors and said, hey, maybe we find a cheaper way to do it.

5:24And I'm sure companies out there that are looking to create forms of memory that will be more sustainable at cheaper prices. But until that point, and that'll take three to five years, minimum until that time, this story is equally as important as the GPU. We saw Sanjay speak on CNBC, and he echoed the same exact words. This is as strong of a story as the GPU because none of this works if it can't remember. AI can't get better if it can't remember. Simply put, he said AI can't get better if it can't remember, if it can't learn, if it can't train. In order to do that, you're going to need memory.

6:06And so that's the fair indication that says like this is still very much a bullish sector. You know, I went deep in the research on it. This guy's a legend. Who, Sanjay? A legend. What? Yeah. He's the CEO of Micron. You know the other company he created? Sandus. He's the creator and founder of Sandus. left in 2016 to take Micron. And now look at what those companies are doing. Think about the conviction he's had for this sector from a NAND standpoint and now from a high bandwidth standpoint and where that is going to lead over the next five to 10 years. That's pretty legendary shit. That's iconic, bro.

6:56And also the Indian CEO index, if you want to parse through the data, higher returns for sure. he's one of the ones he's one of the ones and so it's at a perfect time because his belief in this the memory landscape again this was a game thing like i don't think people understand this was a gaming thing same way uh that video technology developed in an underworld market and then became mainstream memory was has become the same way um if you want to find the next breakout company that is not mainstream yet, they're going to be in a niche. Quick one before you jump back in. You're listening for ways to help teams move faster, make sharper decisions, and turn scattered context into work they can use.

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11:49You're going to see your next great company. And if you look at a founder that is incredibly diligent, not on the scenes, not on Twitter, getting into catfights, you'll be able to identify some amazing companies. But it's really important that you use the product and love the product. like even an Apple for them to say, we may use a Chinese memory company. Why? And you have a leasing program for every product. It makes no sense. But like you are getting the phone subsidized from day one, either through single wireless back in the day or now through the leasing program that you can pay the monthly on.

12:26So they're one of the first biggest companies that are going to introduce the rent everything, own nothing kind of concept. it makes no sense to have that kind of stance to not be in the national. I'm like, you've been increasing prices for the past five years when it wasn't memory. Since 07, you've been increasing prices. What was the cost? What? Okay. Yeah. You came out with the MacBook Neo and all this. It's like, you don't have to increase price. You don't have to. Yeah, we looked at the profit margins, guys. You don't technically happy you have a bro even in the video like and videos set to do 92 billion the bahamas make 16 billion a year like these are countries we're talking about apple has a bunch of cash available if they wanted to buy a memory company and bring it in-house they could have well that's that's the part though if they if they say that they don't if this is a bottleneck well it's this right you'll hear shareholders say hey our profit margin has gone down right so it's like you kind of got to do it because if if sediment starts to change and we already saw that it's beating every quarter it's still it still drops because great or exceptional isn't exceptional enough yeah it's like you can't you know what we understand that can see that there's a cost increase so we're gonna have to pass that on rather than saying hey we'll eat that cost how long can we eat it well then operating margin goes down then profit margin goes down and when people start to see a decline like they can say hey our gross margin is going to be 74.5 percent if the street expects 75 oh wait we saw a decline all right hold on hold on i mean that's why i agree with sam but i'll take the shares even in having shareholders i think it's really important to paint the division and this is what steve jobs is really good at to not focus on the one or two your cycles and tell you where you're going to be in year 10.

14:29People who held on for Apple for 10 years from 2005 to 2015, illustrious track record. If you want to get off the ship and as a leader, you have to tell the troops, hey, you may not agree with this short term. I have to do all the time, but this is what's best for the brand long term. You got to get the shareholders on board to follow the vision. All that being said, I think it beats again the earnings report. I think that you see a different direction. I think the stock actually climbs. I think it climbs. Okay. Yeah, we'll see. I just got this feeling that the momentum, obviously we've seen it pull back, but we've seen that before when institutions want to have better buying opportunities, we'll start to see stocks slide a little bit.

15:14I think with the momentum, I think with the P-E ratio pulling down a little bit from where it's high as well, I think we see the interest, but Wednesday is the Super Bowl. We'll be watching. Most importantly, hold for 10 years. Stop trading your way into poverty, thinking you're going to get an extra$12 ,000 out of a move that may cost you$200 ,000 in five or six years. Please, please. So that'll happen Wednesday. CrowdStrike also on Wednesday. Both in the portfolio. Definitely watching both. Before you sign off, you tuned in for ways to help teams move faster, make sharper decisions, and turn scattered context into work they can use.

15:54ChatGPT for Business can help. ChatGPT for Business gives teams a shared workspace with admin controls, permissions, and access to work and codecs in ChatGPT. This means your business can move from question to answer and code to rollout quicker. Join over 10 million business and enterprise users worldwide already using ChatGPT for Work. Download the ChatGPT desktop app or contact sales to learn more. Earners, what's up? Look, on Earn Your Leisure, we're all about smart money moves. And here's one that most people skip. Car insurance renews on autopilot, the rates creep up, and nobody tells you.

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17:06If you're headed to a concert, out to dinner, or catching up with your friends on a Friday night, taking a few seconds to check Lyft could leave you with more money to enjoy the experience. Save money. Check Lyft. What if you could have even more and more and more help to pursue your goals? At LPL Financial, we offer more ways for advisors and their clients to thrive. So what if you could? Paid advertisement investing involves risk, including potential loss of principal. LPL Financial LLC member FINRA SIPC. You already know how AI is changing how everyday work gets done, how much ground you can cover, and how fast a team can scale.

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