Apple warns 'unprecedented' memory chip costs will cut holiday margins to 45%
rohanpaul_ai · x · 2026-11-05
Per FT, Apple warned its holiday-quarter gross margin will slide to 45% from 48% as memory chip prices surge, with data-center builders soaking up supply. New CEO John Ternus called pricing "unprecedented." Memory alone cut September-quarter margin 1 point even as revenue rose 12% to $114.5B. Price hikes and stockpiles softened the blow but will fade; Siri AI cloud inference adds a second drag on services margins. Global smartphone shipments fell 20% last quarter while Apple's share rose from 18% to 22%.
Related event: Apple's FY2026 Q4 Beats Expectations as Memory Costs Loom(10 posts)→
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