AAPL · Earnings call · 2026Q2T · Full report

Memory Cost and Margin Pressure

Apple Inc. · 2026-07-30 · Importance 43 · Surprise 32 · No source text

Apple said gross margin declined from 49.3% in the March quarter to 48.1% in the June quarter excluding the tariff refund, with more than 100% of the 120-basis-point change attributable to higher memory costs. The company expects gross margin to decline further to a 46.5% midpoint without the tariff refund, and said more than the full 160-basis-point sequential change is explained by memory-cost increases. Partial offsets included inventory carry benefits, lower non-memory component costs, and favorable product mix. FX was a factor in the March-to-June change but had a minimal impact relative to memory costs in the outlook period.

Key facts

• More than the 160 basis point change from 48.1% to 46.5% is explained by the change in memory cost.
• The sequential change from the March quarter to the 46.5% midpoint is primarily driven by memory.

Impact estimates