Apple AAPL Stock Still Down Weekly as Price Hikes and Legal Risks Offset Manufacturing Push
Apple’s landmark domestic investment announcement lifted sentiment initially, but broader concerns and subscription price hikes weighed on..
Quick overview
- Apple announced a $100 billion expansion in domestic manufacturing, raising its total U.S. investment to $600 billion, but the stock fell 3% over the week.
- The company secured a significant privacy victory in the UK, as the government dropped its demand for a back door to encrypted data.
- Despite positive developments, a pending $490 million investor settlement and a recent streaming price hike have contributed to investor caution.
- The stock found support at the 200-day moving average, suggesting potential stabilization if buyer interest returns.
Live AAPL Chart
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Apple’s landmark domestic investment announcement lifted sentiment initially, but broader concerns and subscription price hikes weighed on the stock through the week.
Apple made headlines on August 8 by unveiling a massive $100 billion expansion in domestic manufacturing, bringing its total U.S. commitment to an extraordinary $600 billion. However the optimism faded quickly and AAPL retreated throughout this week, losing 3% of value. AAPL fell to $224 on Friday, however sellers are facing the 200 SMA (purple) on the daily chart now, which stopped the decline and has acted as support previously.
AAPL Chart Daily – The 200 SMA Held Yesterday
Major Investment in U.S. Manufacturing
The announcement, coordinated with the White House and President Trump, signals a bold step toward reshaping the company’s supply chain to reduce reliance on overseas production.
CEO Tim Cook, a long-standing advocate for iPhone manufacturing at home, stood alongside President Trump at the announcement. Cook has previously floated the idea of a 25% levy to accelerate such a transition, underlining how serious Apple has become about this shift.
Privacy Victory in the UK
Alongside its manufacturing pivot, Apple also secured a high-profile win in the global privacy debate. The UK government dropped its demand that Apple introduce a “back door” to encrypted data, following legal challenges and the company’s controversial removal of Advanced Data Protection (ADP) in the region. Privacy advocates hailed the decision as a victory for secure communications, strengthening Apple’s reputation as a defender of user privacy at a time when data protection is increasingly under political scrutiny.
Legal and Financial Headwinds
Despite these wins, not all developments were positive. A pending $490 million investor settlement, tied to past misstatements regarding China sales, has weighed on sentiment. Combined with investor caution, this has contributed to the week’s downward pressure on the stock. AAPL fell to $224 on Friday before finding support at the 200-day SMA, a technical level that has previously helped stabilize declines.
Streaming Price Hike Raises Eyebrows
Adding to investor unease, Apple also announced its third streaming price hike in three years. Apple TV+ will now cost $12.99 per month, nearly double what subscribers paid in late 2023. While the move reflects Apple’s need to sustain growth in its Services division—an increasingly critical part of its earnings mix—investors appear concerned that higher costs could test subscriber loyalty, especially with rivals offering aggressive bundles.
Outlook: Balancing Optimism and Risk
While Apple’s $100 billion U.S. investment highlights long-term strategic ambition, immediate risks remain. Legal overhangs, higher subscription costs, and cautious investor sentiment dragged the stock down 3% this week. Still, with the 200-day moving average holding as support, Apple could stabilize if buyers return, especially if domestic production gains traction and Services growth offsets hardware volatility.
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