Apple Warns Memory Costs to Keep Rising, Cook Says 'Reluctantly Raised Prices'
AAPL sits 55% above its 52-week low of $201.5.
Summary
Apple's Q3 beat on revenue ($109.42B) and EPS ($2.02), but the real story is the memory cost warning. CEO Tim Cook said memory costs rose sequentially and will increase further in the September quarter, with the benefit from lower-cost inventory fading beyond that. He characterized the memory pricing environment as a '100-year flood' and said Apple 'reluctantly raised prices' on Macs, iPads, and accessories—though iPhones remain untouched for now. The September-quarter revenue growth guide of 9-11% marks a sharp slowdown from the 16% in Q3, and shares plunged 6.33% after hours. Apple trimmed its 4Q guide, with iPhone revenue at $54.25B, and noted R&D spending rose 32%, while Ternus is set for September 1.
At the time of this announcement, AAPL was trading at $312.33 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.9T. The 52-week trading range was $201.50 to $344.57. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Benzinga.