From the Guardian · Staff and agencies · · 1m 20s
Apple warns of unprecedented memory chip price surge
Apple's new CEO says memory costs will squeeze profit margins as the iPhone maker battles datacentres for chip supplies.
In brief
Apple's new CEO says memory costs will squeeze profit margins as the iPhone maker battles datacentres for chip supplies. Apple warned investors that unprecedented memory chip price rises will eat into profit margins, though price increases on devices have offset some impact. Originally reported by the Guardian.
Apple's new CEO warns of chip crisis
John Ternus told investors on Monday that memory chip prices are at unprecedented levels. He predicted costs would rise even higher in the fourth quarter of this year.
“What we're seeing with memory pricing right now is unprecedented”
AI datacentres drive the chip shortage
The tech industry has been gripped by RAMageddon for months as demand for memory chips from AI datacentres has surged, driving up prices across the sector.
Apple raises device prices to offset costs
Apple raised iPad and MacBook prices in June, then iPhone prices in September. CEO Ternus said these increases had provided some offset for the company against rising chip costs.
Strong results despite margin pressure
Apple posted stronger-than-expected revenue of one hundred fourteen point five billion dollars in the July-September period, up twelve percent from one hundred two point five billion dollars a year earlier.
Shares fall despite solid earnings
Apple earned thirty point seventy-one billion dollars, or two dollars ten a share, beating analyst expectations of one dollar ninety-nine a share. Shares fell two point seventy-five percent in after-hours trading.
At a glance
Apple warned investors that unprecedented memory chip price rises will eat into profit margins, though price increases on devices have offset some impact.
