Best Buy and Apple are flagging price shocks for consumers

Apple’s Tim Cook sounded the alarm about price hikes in June.

“Unfortunately, price increases are inevitable,” he told the Wall Street Journal. “We are doing everything we can to reduce the large increase that is being transmitted to us.”

The problem is the global shortage of memory chips. These components, known as DRAM (memory) and NAND (storage), are inside almost every computer device sold today.

Cook did not take his warning lightly.

“This is a hundred-year flood,” he said.

It’s a situation that means higher prices, not just for Apple, but for consumers across the board. Normally, that would push shoppers to stock up before prices go up, but that’s not what’s happening, according to outgoing Best Buy CEO Corie Barry.

Best Buy’s CEO’s stock buying habits

Traditionally, when people know that price increases are coming, that leads at least some consumers to buy in advance to meet future needs.

That doesn’t happen, according to Barry.

“In our research about the consumer. We don’t see any indications that the consumer is moving forward,” he said during Best Buy’s first-quarter earnings call.

Other Merchandise:

Barry noted that future price increases, something that will greatly affect any product that uses memory, unless the manufacturer chooses to eat higher costs, did not affect customer purchases.

“And in fact, very few are worried about the memory, as I say, of the quotes of the spirit. And we have been keeping a strong eye on this. So I think, and, I mean, we continue to see the behavior of customers who are very consistent, which is a customer who is under less pressure, but still strong, attracted by deals and sales periods, buying within their budget,” he added.

Americans are on guard

A few months ago, I ordered a hot tub because it was offered at a lower price than I had seen before. We hadn’t moved into the house with the spa yet, but spending money now meant saving about $1,000 rather than pushing the purchase down the road.

If consumers choose not to buy in advance, despite expected price increases, it could be an early sign that they feel less confident about future spending. That’s supported by data from a report by McKinsey & Company’s ConsumerWise team.

“In the second quarter of 2026, US consumers faced uneven employment, inflation, and ongoing geopolitical conflicts. Against this, a small portion of consumers reported feeling optimistic about the economy, while a large portion said they felt pessimistic. Consumers also reported intentions to postpone spending across multiple choice categories,” according to McKinse.

That doesn’t match what Barry sees.

“And while they’re thinking about big-ticket purchases, they’re absolutely willing to spend at those higher price points when they need to or when the technology is compelling enough,” said Best Buy’s CEO, who is stepping down in October.

Americans say they are cautious

The intention to spend within the discretionary categories has decreased significantly, according to McKinsey.

“Big-ticket sales segments may face the greatest pressure. Consumers reported that the overall negative intent to spend on appliances, jewelry, and home decor, while the intent to spend on sports and outdoor equipment, furniture, and short-term apartment rentals decreased significantly from the previous quarter,” the report said.

In some cases, the drops are very large.

“In many of these categories, 40 to 50% of consumers say they expect to spend less money during the next three months. In almost all categories of choice, the share of consumers who plan to spend more remains small – usually in the low-to mid-teens,” added McKinsey.

Bank of America’s April Consumer Checkpoint showed positive signs.

“Spending growth was strong in April, according to Bank of America’s internal data. Total credit and debit card spending per household increased 4.8% year-over-year (YoY), up from 4.3% YoY in March. Excluding gasoline, card use was still strong at 4.0% YoY. However, spending growth slowed slightly in April from March across all discretionary categories,” the report said.

The Americans returned at the end of the month.

“A look at the 7-day moving average for total card spending per household at the end of April suggests that spending growth may have slowed significantly toward the end of the month, particularly in discretionary spending,” BofA data said.

Related: Southwest Airlines is dropping another popular customer favorite

This story was originally published by TheStreet on Jul 6, 2026, where it first appeared on Selling part. Add TheStreet as a Preferred Source by clicking here.