Memory cost explosion won't hurt Apple too badly in Q2, may sting in Q3

Tim Cook says that the rising cost of RAM and Flash that the industry is facing has not yet affected Apple, but he expects it to be an increasing issue in this quarter, and worse yet in the third fiscal quarter of 2026.


During Apple's latest earnings call, CEO Tim Cook addressed the issue of rising component costs, specifically memory, that have been expected to impact Apple's costs.

"Memory had a minimal impact on the Q1, so [on] the December quarter gross margin," said Cook. "We do expect it to be a bit more of an impact to the Q2 gross margin, and that was comprehended in the outlook of 48% to 49% that Kevan [Parekh] gave earlier."


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