Apple CEO Tim Cook announced during the company’s latest earnings call that rising memory prices are expected to reduce profit margins to 46.5% for the September quarter, down from 48.1% in June. The ongoing memory shortage, caused by high demand from data centers, has driven Apple to increase prices on some products, including Mac computers, and test new memory suppliers like China’s CXMT.
Despite these adjustments, Apple faces a significant challenge, as Cook indicated that the company has been consistently paying more for memory and anticipates this trend will persist. The current memory crisis, influenced by major suppliers Samsung, SK Hynix, and Micron Technology, could continue until 2027 or even 2030, further complicating efforts to stabilize margins under incoming CEO John Ternus.
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