Apple Struggles with Rising Memory Costs
John Ternus, Apple’s Chief Executive Officer (CEO), expressed confidence in new products and artificial intelligence (AI) strategies during his first earnings call since taking office. However, the market focused more on slowing growth and profitability pressures rather than promises of innovation.
Apple is facing challenges due to rising memory costs, despite announcing a 12% increase in sales for the fourth quarter of its 2026 fiscal year (July to September) to $114.48 billion, surpassing market expectations. However, the company's year-end sales forecast fell short of expectations, and its gross margin is projected to decline.
Apple CEO John Ternus expressed concern over the unprecedented memory pricing situation and the potential for memory costs to rise higher during the peak year-end season. Despite price increases on Macs and iPads, CFO Kevan Parekh stated that it is too early to gauge the impact on demand due to supply constraints and recent price adjustments.
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