Apple executives warn of persistent memory cost increases
Apple CFO John Ternus reports that record-high memory prices are pressuring profit margins and expects costs to climb further through the end of the year.
During the company's fiscal Q4 2026 earnings call, Apple executive John Ternus described current memory market conditions as experiencing unprecedented price hikes. While the company managed to offset some of these costs in the previous quarter through strategic inventory management and price reductions in non-memory components, the window for such mitigation is closing.
Looking ahead to the quarter ending in December, Apple anticipates that memory procurement costs will continue their upward trend. The company has already implemented price adjustments for its iPhone, Mac, and iPad product lines earlier this year to protect margins against the rising input costs.
Ternus signaled that relief is unlikely in the near term. As existing inventory buffers are depleted, the company faces sustained pressure, which may result in further price increases for consumers or potential changes to product configurations to maintain profitability.