Apple Warns Gross Margin Drops to 45% on Memory Price Surge

1 reports archived1 independent sourcesupdated 11/5/2026, 01:42:54

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Apple CEO John Ternus warned that surging memory chip prices, driven by data-center demand, will reduce holiday-quarter gross margins from 48% to 45%. Despite revenue growth, rising hardware costs and Siri AI cloud inference expenses are eroding profits, with inventory buffers fading.

LATEST/Apple CEO John Ternus warned that surging memory chip prices, driven by data-center demand, will reduce holiday-quarter gross margins from 48% to 45%. Despite revenue growth, rising hardware costs and Siri AI cloud inference expenses are eroding profits, with inventory buffers fading.

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Rohan Paul (@rohanpaul_ai)T2Nov 5, 01:42·68 pts
Apple Warns Gross Margin Drops to 45% on Memory Price Surge
- Data-center builders absorbing memory supply forces Apple to pay for the AI boom through component bills.
- Siri AI's cloud inference costs act as a second drag, hitting services margins directly.
- Apple mitigated impact via stockpiling and price hikes, but expects this buffer to fade soon.
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