0AAPL.US Overview

Market Performance: US stocks showed mixed results, with the DJIA slightly up by 17 points, while the Nasdaq and S&P 500 closed down 273 points and 37 points, respectively, as investors reacted to corporate earnings and economic data.

NVIDIA's Earnings Impact: Despite NVIDIA's profit nearly doubling and strong revenue growth in its data center business, its stock fell by 5.5% after earnings, contributing to a decline in other chip stocks like Broadcom and AMD.

Economic Data: Factory Orders in the US for December decreased by 0.7%, which was worse than the forecasted decline of 0.5% and significantly lower than the previous month's increase of 2.7%.

Tech Stock Movements: Major tech companies experienced varied performance, with Tesla, Alphabet, Amazon, and Apple all declining, while Meta and Microsoft saw slight gains of less than 1%.

iPhone 18 Production Update: The iPhone 18 series has begun mass production testing, with the iPhone 18 Pro production line also starting operations, according to reports from a Chinese Weibo account.

Minimal Design Changes: Sources indicate that the iPhone 18 series will feature only minor material changes, with the overall design specifications remaining largely the same as previous models.

Production Timeline: This development aligns with Apple's usual schedule, transitioning from design verification testing to early production verification testing around February for new iPhone models.

Media Coverage: MacRumors, a publication focused on Apple news, has provided analysis on the production progress of the iPhone 18 series.

Supreme Court Ruling: The US Supreme Court ruled that the reciprocal tariffs imposed by former President Trump under the IEEPA were unconstitutional, leading to their overturning.

New Executive Order: Following the ruling, Trump signed a new executive order to impose a 10% "global tariff" on all imported goods, with plans to increase it to 15% on February 21.

Impact on OEMs: Citi Research believes that the diversification strategy of US Original Equipment Manufacturers (OEMs) will remain unchanged despite the tariffs.

Manageable Effects on Supply Chain: The impact of the tariffs on the supply chains of major companies like Apple, NVIDIA, and leading Cloud Service Providers is expected to be manageable and will gradually lessen.

Apple's Contract with Kioxia: Apple has reportedly agreed to contract terms with Kioxia due to tight supply and rising prices of storage chips, with Kioxia's stock experiencing a slight dip.

Price Increase for NAND Flash Memory: Kioxia plans to double the unit procurement price of its NAND flash memory starting from the first quarter of 2026, with quarterly adjustments based on market conditions.

Impact on Apple: Despite securing a short-term supply contract, Apple may still face ongoing cost pressures from the rising prices of NAND flash memory.

Market Conditions: The adjustments in NAND prices indicate potential volatility in the market, which could affect Apple's supply chain and pricing strategies.

Tech Industry Concerns: Leaders like Elon Musk and Tim Cook are warning about a global crisis due to memory chip shortages affecting profits and corporate planning, with rising prices impacting various products.

AI Data Centers Impact: The construction of AI data centers is straining memory chip supply, as AI chips require significant high-bandwidth memory, leading to shortages in traditional sectors like mobile phones and PCs.

Ongoing Supply Tensions: Memory chip supply has been tight even before the full launch of AI data center plans, with prices increasing and expectations that supply issues will persist until at least the end of the year.

Market Reactions: Lenovo's CEO has indicated that the structural imbalance between supply and demand is not a temporary issue, reflecting broader market concerns about the sustainability of chip supplies.

US Stock Market Decline: The US stock market experienced a significant drop on Thursday, with the DJIA falling 669 points (1.3%), the Nasdaq down 469 points (2%), and the S&P 500 decreasing by 108 points (1.6%) as investors sold off tech stocks.

Cisco's Quarterly Results: Cisco reported quarterly results that exceeded expectations; however, a disappointing gross margin target led to a 12.3% decline in its stock, making it the biggest loser in the DJIA.

Tech Stocks Under Pressure: Major technology companies faced substantial selling pressure, with Apple down 5%, Meta and Amazon both down over 2%, Nvidia down 1.6%, and Microsoft down slightly.

Defensive Stocks Perform Well: In contrast to the tech sector, defensive stocks like Walmart and Costco saw gains, increasing by 3.8% and 2.1%, respectively, amid the market downturn.