Apple Forecasts Rising Memory Chip Prices, Providing Positive Signal for Micron Technology
During its recent earnings call, Apple CEO John Ternus indicated that memory chip pricing is expected to continue rising beyond the December quarter, describing current price levels as 'unprecedented.' This guidance comes despite a slight projected dip in Apple's gross margins, which management attributes largely to these escalating component costs. Additionally, Apple noted that high memory costs may limit supply for Macs and iPads due to stronger-than-expected demand. While Japanese flash memory maker Kioxia reported modest revenue growth expectations for the December quarter, analysts suggest Apple's comments are more significant for Micron Technology (MU). Unlike Kioxia, which focuses on NAND flash, Micron derives 73% of its revenue from DRAM. As a major provider of short-term working memory, Micron stands to benefit from the sustained pricing upward trend signaled by one of the world's largest technology purchasers.
Coverage
- Apple Forecasts Rising Memory Chip Prices, Providing Positive Signal for Micron Technology
- Apple Reports Record $114.5 Billion September Quarter Revenue Amid Margin and Supply Constraints
- Apple Increases Component Inventory to $10.4 Billion Amid Unprecedented Memory Price Surges
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