Apple Expects 'Significantly Higher Memory Costs' in June Quarter and Beyond
Apple had higher memory costs during the March quarter, and the impact is expected to get worse as the year goes on. Apple CEO Tim Cook said that Apple is expecting "significantly higher memory costs" in the June quarter, and beyond June, memory costs will "drive an increasing impact" on Apple's business.
Cook said the higher memory costs have been partially offset because the company is selling existing inventory that it has stockpiled. As those supplies dwindle, Apple's costs will go up.
According to Cook, Apple is going to look at a "range of options" and the company is "continuing to evaluate" the situation. Cook declined to provide more insight into how Apple plans to deal with the problem.
Memory costs have been soaring due to global supply constraints caused by AI server demand. Chip makers are prioritizing memory for AI servers rather than consumer devices, causing prices to go up.
Popular Stories
The iPhone 18 Pro and iPhone 18 Pro Max's all-new variable aperture lens will cost Apple 50% more than the camera unit used in current models, according to supply chain analyst Ming-Chi Kuo.
Variable aperture has been one of the most persistent iPhone camera rumors of the past few years. Kuo first flagged the feature in late 2024, and it has since been corroborated by multiple reports and...
New models of the Apple TV 4K and HomePod mini are "nearly ready to go," according to the latest word from Bloomberg's Mark Gurman.
Both devices have been ready "for months," but Apple is holding off on launching them until the more personalized version of Siri is available, he said.
"I am told the hardware for the next Apple TV set-top box and HomePod mini has been done for months and...
Leaker Sonny Dickson today shared images of iPhone 18 Pro dummy models in the device's four rumored colors, offering the first real-world look at what to expect from the lineup visually.
Corroborating previous rumors, the dummies show the iPhone 18 Pro Max in Light Blue, Black, Silver, and Dark Cherry. Dickson said "Cherry will probably be the next hit, orange did very well." Cosmic Orange...
