Apple's Q4 earnings call highlighted unprecedented memory pricing as a dominant theme, with John Ternus and CFO Kevan Parekh warning of continued cost increases. Despite beating Wall Street forecasts, high RAM and flash media costs pressured margins. Ternus noted the company raised prices on Mac, iPad, and iPhone to partially offset the burden, but expects memory costs to rise further into the December quarter.
While Apple is expanding US production through its American Manufacturing Program, Ternus clarified that spending is not directed toward RAM or flash media. The carry-in inventory benefit is diminishing over time as suppliers maintain price hikes. Analysts repeatedly questioned the duo on the topic, underscoring its impact on the quarter's results.
Looking beyond the December quarter, Apple anticipates continued pricing pressure with decreasing benefit from existing inventory strategies.
Source: AppleInsider · Summarized by HeadlinesBriefing