Apple forecasts lower 1st-quarter margins as memory chip prices surge
Apple is dealing with a supply chain headache as memory chip prices spike, thanks to shortages after the memory makers, primarily Micron, Samsung Electronics, and SK Hynix, were loath to start investing in new factories.
The result? Apple expects its first-quarter gross profit margin to dip sequentially by 1.4% points to 45% to 46%, after excluding tariff refunds, definitely not ideal for the world's biggest tech giant.
Apple stockpile $10.4B, commitments nearly $90B
To stay ahead, Apple has massively boosted its component stockpile, from $2.1 billion last year to $10.4 billion now, and increased its commitments to manufacturers by $33 billion, reaching nearly $90 billion in total.
These moves show Apple is doubling down on efficiency and making sure it can keep delivering devices, even when the market gets tough.