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Apple’s Record iPhone Quarter Collides With AI-Driven Memory Squeeze

Tim Cook says rising memory prices beyond Q2 will pressure margins.

Overview

  • Apple posted $143.8 billion in revenue, up 16% year over year, with iPhone sales rising 23% to $85.3 billion in the holiday quarter.
  • Cook said memory costs had little impact on Q1 but will be a Q2 gross‑margin headwind, adding that market pricing for memory will increase significantly beyond Q2.
  • He flagged constrained supply of advanced‑node processors and said Apple exited the quarter with very lean channel inventory, leaving the company in supply chase mode.
  • An AI data‑center build‑out is tightening supplies of DRAM and NAND, boosting prices and shifting supplier focus toward server customers.
  • Reporting indicates Samsung and SK Hynix have raised certain DRAM prices for Apple, while memory makers such as Micron are benefiting from stronger pricing.