Apple’s Memory Crisis Hits Margins | Business and Finance News

Apple’s Tim Cook calls the global memory chip shortage a “hundred-year flood” — an unprecedented surge driven by AI’s insatiable appetite for data centers, sending prices soaring and squeezing Apple’s margins. While suppliers like Micron and SK Hynix profit, Apple faces steep cost pressure, with memory expenses alone explaining over 100% of recent gross margin erosion. The company forecasts lower margins next quarter but is countering with component cost cuts and existing inventory. Despite short-term pain, iPhone sales are rising and Apple’s multi-year Broadcom deal bolsters resilience — investors brace for margin headwinds, but Apple’s dominance suggests it’ll weather this storm. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/f578c5462263624a