Particle.news

Apple Says Memory Prices Are ‘Unprecedented’

The warning signals higher device prices along with tighter supply because Apple is building inventory to absorb rising RAM costs.

Overview

  • Apple CEO John Ternus described current RAM pricing as "unprecedented" and said costs will climb further into the year and beyond.
  • The company has more than doubled inventory to $14.5 billion and increased manufacturing purchase obligations by $33 billion as it stockpiles lower-priced memory.
  • Apple told investors it will use those inventories to soften the impact but warned gross margin will fall to about 45–46% in the December quarter mainly because of memory costs.
  • Apple said Mac and iPad supply will be tight in the near term and would not rule out additional device price increases, with higher-RAM models most at risk.
  • Other industry players have forecast multi-year memory tightness, which could keep device prices elevated and constrain availability into 2027 and beyond.