In its earnings release on November 2, Apple said its gross margin was 47.9% in Q4, but was expected to fall to 45%–46% in December amid soaring memory chip prices and increased spending on AI infrastructure. Apple reported quarterly revenue of $114.5 billion, up 12% year over year, despite pressure on its margins.
Apple’s production-related purchase commitments reached $89.7 billion as of September 26, up about $33 billion from the previous quarter. Component inventories surged to $10.45 billion, compared with $2.12 billion a year earlier. CEO John Ternus described the memory pricing situation as unprecedented: demand for high-bandwidth memory for AI infrastructure is reducing component availability in consumer electronics.
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Apple’s production-related purchase commitments reached $89.7 billion as of September 26, up about $33 billion from the previous quarter. Component inventories surged to $10.45 billion, compared with $2.12 billion a year earlier. CEO John Ternus described the memory pricing situation as unprecedented: demand for high-bandwidth memory for AI infrastructure is reducing component availability in consumer electronics.
$AAPL
$SOL
$HIMSB