Apple warns memory costs will rise further after price increases on iPhones, Macs and iPads
Apple chief executive John Ternus called memory pricing “unprecedented” and said costs would rise further in the December quarter. Price increases on Macs and iPads in June and iPhones in September have partly offset the pressure, but Apple expects memory costs and supply constraints to weigh on its hardware business.
Bottom line — Apple expects memory costs to rise again in the December quarter; executives have not announced further price increases.
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Apple’s December-quarter gross-margin forecast is 45% to 46%, down from 47.9% in September, The Apple Post reports.
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Chief financial officer Kevan Parekh said it was too early to assess how the price rises affected demand, according to the Guardian.
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Chief operating officer Sabih Khan said Mac and iPad constraints would continue in the December quarter, mainly because of memory, according to International Business Times UK.
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Apple said lower-priced memory inventory and cheaper non-memory components had partly cushioned the rising costs, the Guardian reports.
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The Guardian reported Apple shares fell 2.75% in after-hours trading after the warning.