Apple Faces Memory Shortage Hitting Margins

Apple CEO Tim Cook said on the company's first-quarter earnings call that a global memory chip shortage is beginning to bite, with rising memory prices expected to weigh on margins in the second quarter and contribute to a forecast gross margin of 48%–49%. Cook cited constrained access to advanced chipmaking nodes and 'very lean' iPhone inventory after surging demand, while industry reports indicate DRAM price hikes of 40%–70% driven by AI and server demand.