Business / NEWS UPDATE
Apple warns of ‘unprecedented’ rise in memory chip prices
Published · 1 min read
Apple has warned of an unprecedented rise in memory chip prices, impacting its profit margins.
The company's shares fell in after-hours trading after it announced that the higher prices would offset some of the impact, with revenues stronger than expected. Apple's new CEO, John Ternus, predicts memory costs will be even higher in the fourth quarter. The tech industry faces a surge in demand for memory chips from AI datacentres, driving up prices. Apple has raised prices for its iPad, MacBook, and iPhone to mitigate the impact, but its shares are down 2.75% in after-hours trading.