Nintendo price hike raises margin concerns for Apple as memory costs surge

Nintendo (7974.JP) raised Switch 2 prices in select markets and cut its sales forecast, intensifying investor concern that Apple (AAPL) could face similar pressure from surging memory costs tied to AI infrastructure demand. Nintendo said on May 08, 2026, it will lift the U.S. price of the Switch 2 to about $500 from roughly $450 starting in September 2026. It also reduced its fiscal-year Switch 2 sales forecast to about 16.5 million units, down from 19.9 million in the prior fiscal year ended March 2026. Benchmark Research analyst Mike Hickey cited tariffs, component inflation and sharply higher memory prices as key drivers. TrendForce data showed memory prices nearly doubled quarter over quarter in the first quarter of 2026. IDC estimates memory accounts for 10% to 15% of premium smartphone bill-of-materials costs. Apple has not raised prices, helping Greater China second-quarter revenue reach $20.5 billion, above the $19 billion estimate and $16 billion a year earlier.