AAPL · Earnings call · 2026Q2T · Full report
Memory Cost Pressure
Apple Inc. · 2026-07-30 · Importance 32 · Surprise 24 · In source text
Apple said it paid significantly more for memory in the June quarter than in the March quarter and expects memory costs to rise again in September. Carry-in inventory and lower costs for certain non-memory bill-of-material components will partly offset the pressure, but the inventory benefit is expected to diminish beyond September. Management expects market memory pricing to continue increasing and said DRAM supply is concentrated among three suppliers. Apple has reluctantly raised product prices in response to what management called exponential memory-price increases and is evaluating additional sourcing options.
Key facts
- More than 100% of the 120 basis point change from March to adjusted June was explained by the memory cost change.
- Apple paid more for memory in June quarter than March quarter and expects to pay even higher memory costs in September quarter
- Carry-in inventory partially offset memory cost increases in June and will provide some benefit in September but decreasing benefit over time beyond September
- DRAM market primarily has three suppliers which Apple cites as limiting; Apple is evaluating all options for sources of supply
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | negative | realized | — | Apple paid more for memory in June quarter than March quarter and expects to pay even higher memory costs in September quarter |
| margin | negative | probable | — | Apple paid more for memory in June quarter than March quarter and expects to pay even higher memory costs in September quarter |
| margin | positive | realized | — | Carry-in inventory partially offset memory cost increases in June and will provide some benefit in September but decreasing benefit over… |
| margin | positive | probable | — | Carry-in inventory partially offset memory cost increases in June and will provide some benefit in September but decreasing benefit over… |
| margin | negative | contingent | — | Carry-in inventory partially offset memory cost increases in June and will provide some benefit in September but decreasing benefit over… |