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Apple Warns Rising Memory Chip Prices Are Unprecedented as Revenue Beats Expectations
Apple warns memory chip price rises are unprecedented as its revenue beats expectations.
Key points
- Apple's revenue rose 12% to $114.5bn from $102.5bn in the July-September quarter.
- Apple said its earnings included five cents a share from tariff refunds.
- Demand for memory chips from AI datacentres has driven up prices, which Apple says will eat into its profit margins.
Why it matters. Higher memory costs could squeeze Apple's profit margins, while its partnerships with companies such as Alphabet could help it strengthen its AI capabilities without the same financial risks as rivals.
Apple chief executive John Ternus told a conference call on Monday that memory chip prices are rising at an unprecedented pace, as the iPhone maker reported quarterly revenue of $114.5bn. Apple earned $30.71bn, or $2.10 a share, in the July-September period, beating analysts' average forecast of $1.99 a share, according to a FactSet poll.
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Apple Warns Rising Memory Chip Prices Are Unprecedented as Revenue Beats Expectations
Apple has warned that the rise in memory chip prices is unprecedented. The company said its decision to raise prices has offset some of the impact on its margins. Revenue came in stronger than expected, according to the company's statement. The warning on component costs points to continued pressure on the hardware supply chain. The Guardian reported the warning on November 3, 2026.