Apple faces profit squeeze, soaring memory prices threaten iPhone profits
2026-11-04 23:49:40
According to CoinMeta, Apple has warned that as memory costs soar, gross margin may drop to 45%-46%. Its $89.7 billion in procurement commitments highlight the scale of the supply shortage. Although demand for high-end smartphones has driven record sales, Apple expects the surge in memory chip prices to squeeze iPhone's profitability during the holiday quarter. In its financial report on November 2, Apple reported quarterly revenue of $114.5 billion, a year-on-year increase of 12%, and a gross margin of 47.9%. However, management expects the gross margin to decline in the December quarter due to rising memory costs and expenses for artificial intelligence infrastructure. Apple's 2026 annual report shows that the company is actively ensuring manufacturing capacity, with manufacturing procurement obligations reaching $89.7 billion as of September 26, of which $82.7 billion will be due within 12 months. Meanwhile, inventory has climbed from $5.72 billion a year ago to $14.54 billion, an increase of about 154%. These figures indicate that Apple is dealing with an increasingly tight supply of components.
Bullish 1
Bearish 0
Source:Coinpaper
This content is for market information only and does not constitute investment advice.