Apple CEO Ternus Says Memory Price Hikes and Shortages Will Continue Into 2027
During its fourth-quarter 2026 earnings call, Apple execs covered supply chain struggles, high memory costs and the role AI will play in future financials.
In Apple's latest earnings call, CEO John Ternus revealed that memory price hikes and shortages are expected to persist through 2027. The company's revenue for the last quarter of fiscal 2026 saw a 12% year-over-year increase, topping the CEO's description as "the company’s best fiscal year ever," with $418 billion in revenue. Despite this strong growth, Ternus acknowledged that ongoing chip shortages and rising memory costs have limited the availability of iPhone, iPad, and Mac hardware.
He did not rule out future price increases for affected products. The iPhone, described as an "intelligent personal hub," saw a record $57.6 billion in revenue for the quarter, driven by the launch of the new iPhone 18 Pro and Pro Max, as well as early adopters of the iPhone Duo. The foldable iPhone, Apple's first of its kind, sold out quickly, with wait times potentially extending into January 2027.
The Mac Mini and Mac Studio have been particularly affected by the AI boom, as the components required for these devices are being demanded by AI data centers and home AI enthusiasts. Apple's services and subscriptions, including iCloud storage, Apple TV, Music, Apple Pay, and Apple Maps ads, generated $31.6 billion in revenue last quarter.
Ternus expressed optimism about the potential for AI and services growth, as well as the expansion of Apple Intelligence, which could eventually lead to paid tiers for Siri AI and Apple Intelligence bundled into iCloud or iCloud Plus tiers.
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