RightSignal
8 of 13

Your RightSignal

Computer Hardware2 min

Apple expects holiday sales to grow but margins to shrink as memory chip costs rise

Apple expects revenue in its holiday quarter to rise 7% to 10% from a year earlier, above analysts' estimate of 6%, the Financial Times reports. It expects gross margins of 45% to 46%, below the 47% analysts expected, and its services outlook disappointed. Chief executive John Ternus called memory costs "unprecedented" and said Apple expects them to rise into December and beyond. Apple's inventory grew to $14.54B, up 154.3% from a year earlier, as it stockpiled memory, TechCrunch says. Tom's Hardware reports memory makers are prioritising AI data centres, tightening supply for phones and laptops.

Affects you: If Apple, with its buying power, is stockpiling memory, devices from smaller makers may rise in price first. Fairphone says memory is now nearly 60% of the parts cost of some phones.
Company guidance, reportedTechmeme (Financial Times)