Apple Expects 'Significantly Higher Memory Costs' in June Quarter and Beyond
Apple had higher memory costs during the March quarter, and the impact is expected to get worse as the year goes on. Apple CEO Tim Cook said that Apple is expecting "significantly higher memory costs" in the June quarter, and beyond June, memory costs will "drive an increasing impact" on Apple's business.
Cook said the higher memory costs have been partially offset because the company is selling existing inventory that it has stockpiled. As those supplies dwindle, Apple's costs will go up.
According to Cook, Apple is going to look at a "range of options" and the company is "continuing to evaluate" the situation. Cook declined to provide more insight into how Apple plans to deal with the problem.
Memory costs have been soaring due to global supply constraints caused by AI server demand. Chip makers are prioritizing memory for AI servers rather than consumer devices, causing prices to go up.
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