Asian technology shares extended their sharp decline on Friday, driven by fresh concerns that escalating memory chip costs are compelling major manufacturers to raise prices.
The repricing pressure suggests a potential curb on consumer demand for electronics, adding a new layer of risk to the sector's outlook.
The sell-off was triggered by reports that Apple and other key players are facing headwinds from these input cost increases.
Investors are now weighing the likelihood that higher retail prices will dampen sales volumes, particularly in a market already sensitive to economic shifts.
This development marks a significant shift from previous narratives focused solely on supply constraints to one where demand destruction is the primary fear.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 3.8% on Friday, extending its weekly loss to 5.4%.