Analyst: Apple Should Seek Intel as Supplementary Chip Supplier
Claire Weston
Apple fell roughly 8% in pre-market Friday after memory-chip and processor shortages forced a softer September-quarter guide. Melius Research analyst Ben Reitzes urged Apple to bring in Intel alongside TSMC and cut his price target from $385 to $370.
Why did Apple suddenly drop 8%?
The trigger: memory-chip and processor supply shortages pushed Apple's September-quarter guidance below expectations.
This means → Apple can design the products, but cannot secure enough chips to ship them in volume.
Reitzes warned the bottleneck may extend into the December quarter — this is not a one-off hit.
Why is the analyst telling Apple to call Intel?
Reitzes sees memory supply as structurally tight for the long term, with chip-price increases likely to persist.
He recommends Apple press TSMC for more capacity while bringing Intel on as a supplementary supplier.
In plain terms = right now Apple relies on TSMC as its primary chip source; if TSMC runs short, Apple's entire product line stalls. A second supplier is a second lifeline.
Target price cut — so why keep the buy rating?
Reitzes lowered his target from $385 to $370 but maintained a buy rating.
His logic: an improved Siri, new iPhones, and 2027 product launches still hold market appeal.
This means → the analyst sees Apple's problem on the supply side, not the demand side — people want the products; the question is whether Apple can make and ship enough of them.
Content is for reference only, not financial advice.