Apple Inc. faces a sharp drop in shares as analysts weigh how surging memory prices are trimming the tech giant’s margins. The company’s quarterly earnings, due after market close Thursday, will reveal the extent of the squeeze on its iPhone and Mac product lines today.

Investors expect the report to show whether the cost of DRAM and NAND flash has eroded profit margins beyond the usual seasonal dip. A higher expense load could force Apple to adjust pricing or accelerate new‑model launches to preserve revenue growth in the next quarter.

Apple’s market cap, hovering near $2.5 trillion, could see a 3‑5% dip if the earnings miss guidance. Analysts warn that a sustained rise in memory costs may pressure the company’s supply chain, prompting tighter negotiations with chip suppliers and potential cost‑sharing deals for future models.

Watch for Apple’s guidance on capital expenditures and R&D spending, as higher memory costs could shift its investment priorities. Market watchers will also track how the company’s competitors, like Samsung and Qualcomm, respond to the same supply‑chain pressures in the coming quarter for future devices.