Apple · Wall Street · The Guardian Technology
Apple cautions of ‘record’ rise in memory chip prices
Compiled by KHAO Editorial — aggregated from 1 source. See llms.txt for citation guidance.
◌ Single Source
Apple has warned of an “unprecedented” rise in memory chip prices, as it battles with datacentres to lay its hands on supplies.
Key facts
- Apple earned $30.71bn (£22.89bn), or $2.10 a share, in the July-September period, up 12% from $27.47bn, or $1.85 a share, in the equivalent period a year earlier
- Analysts, on average, were expecting earnings of $1.99 a share on revenue of $113.4bn, according to a poll by FactSet
- Revenues were up 12%, driven primarily by iPhone sales and strong sales of Mac Mini, which users can use to apply agentic AI
- Apple’s shares were down 2.75% in after-hours trading on Wall Street
Summary
The iPhone maker’s shares fell in after-hours trading after it told investors that the higher prices will eat into its profit margins. “What we’re seeing with memory pricing right now is unprecedented,” John Ternus, Apple’s new chief executive, told a conference call on Monday, predicting that memory costs in the fourth quarter of this year would be even higher than in the previous three months. The tech industry has been gripped by “RAMageddon” for months, as demand for memory chips from AI datacentres has surged, driving up prices. Ternus said Apple’s decision to raise iPad and MacBook prices in June, followed by iPhone prices in September, had “provided some offset” for the company.