Apple Expects 'Significantly Higher Memory Costs' in June Quarter and Beyond

Source: MacRumors

Apple had higher memory costs during the March quarter, and the impact is expected to worsen as the year progresses. 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 noted that the higher memory costs have been partially offset because the company is selling existing inventory it has stockpiled. As those supplies dwindle, Apple’s costs will rise.

According to Cook, Apple is looking at a “range of options” and is “continuing to evaluate” the increasing memory costs. He declined to provide more insight into how Apple plans to address the problem.

Memory costs have been soaring due to global supply constraints driven by AI server demand. Chip makers are prioritizing memory for AI servers rather than consumer devices, pushing prices higher.