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Apple reportedly agrees to double NAND unit prices from Kioxia

Friday, February 13, 2026 at 04:00 AM

Apple has reportedly accepted Kioxia's demand to double NAND flash memory unit prices starting in the first quarter of 2024, with subsequent pricing set for quarterly adjustments.

Context

Morgan Stanley has significantly upgraded Kioxia’s profit outlook, raising its target price to ¥33,000 following a critical pricing breakthrough with Apple. The firm now expects Kioxia’s average selling price (ASP) to surge 90% QoQ in Q1 2026, with CY2026 YoY growth forecasted to exceed 100%. This shift indicates that Kioxia has successfully renegotiated historical contract constraints, forcing major OEMs to procure NAND flash at much higher market rates than previously anticipated. For FY2027, Morgan Stanley projects revenue will reach ¥4,280.1 billion, while non-GAAP operating profit is set to double to ¥2,723.2 billion with a 64% adjusted margin. Net income is expected to hit ¥1,930.3 billion, driving EPS to ¥3,562.9. As global 2026 production capacity is already largely sold out due to explosive AI inference demand, Apple faces sustained margin pressure from these sharply elevated component costs through 2027.

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