Apple Guides 46.5% Gross Margin as Memory Costs Erode Profit
Updated
Updated · Yahoo Finance · Aug 12
Apple Guides 46.5% Gross Margin as Memory Costs Erode Profit
3 articles · Updated · Yahoo Finance · Aug 12
Summary
46.5% is Apple’s midpoint gross-margin guide for the September quarter before refunds, down from an ex-refund 48.1% in June and 49.3% in March.
Memory costs drove more than the entire margin decline in both quarters, with management saying prices are still climbing as AI-fueled demand tightens the DRAM market.
$109.4 billion in June-quarter revenue—up 16%—shows demand remains strong, with iPhone sales up 22% and Mac up 29%, making costs rather than sales the central risk.
Apple has already raised iPad and Mac prices and is testing China’s CXMT chips for some devices, but that could ease supply more than pricing and may require U.S. approval for China sales.
9.6 times sales and a 27.6% net margin leave the stock exposed if the memory bill keeps rising beyond management’s current outlook.