Apple's Stock Drops Nearly 10%. How Will It Respond to Memory Shortage? (yahoo.com)
(Saturday August 01, 2026 @05:39PM (EditorDavid)
from the thinking-different dept.)
- Reference: 0184804370
- News link: https://hardware.slashdot.org/story/26/08/01/2011241/apples-stock-drops-nearly-10-how-will-it-respond-to-memory-shortage
- Source link: https://finance.yahoo.com/technology/article/apple-stock-slides-nearly-10-as-cook-warns-of-memory-shortage-impact-115246491.html
Apple's stock "fell just shy of 10% on Friday," [1]reports Yahoo Finance , "after CEO Tim Cook warned about the impact of the global memory shortage on the company's business."
> During Apple's third quarter earnings call, Cook said the company paid significantly more for memory in the quarter and expects that to further increase in the current period. And while Apple is able to offset some of that price jump, it won't be able to tackle it all... The CEO said that iPhone and Mac sales outpaced Apple's own expectations and that a lack of flexibility in the supply chain is making it more difficult to keep up with demand.
Yahoo Finance cited an investment analyst who predicts overall gross margins for Apple's iPhone could drop from 38% to 34.5%. But another analyst sees a scenario where Apple "raises iPhone prices, unit growth will slow, and as unit growth slows, so will user growth, which we think ultimately will slow Services growth." (Still, Yahoo Finance predicts Apple's [2]new leasing program "could help address those concerns.")
Apple has another controversial option, [3]according to the blog 9to5Mac :
> [4]Bloomberg reports that US senators from both sides of the aisle are urging Apple CEO Tim Cook to commit by August 21 to not using memory chips from Chinese suppliers CXMT and YMTC....
>
> Apple is not required to obtain U.S. government approval to purchase chips from the companies, but doing so without the administration's support could expose it to significant political ramifications. Which is why, in an [5]interview with The Wall Street Journal ahead of Apple's recent [6]price hikes , Tim Cook said that "everything needs to be on the table," adding that "we should look at all supply...." More recently, the [7] Journal reported that Apple's use of Chinese memory chips could extend beyond China, with the company seeking the administration's blessing to use components from CXMT and YMTC in products sold elsewhere outside the US. The report also detailed Micron's efforts to persuade the administration to reject Apple's request, arguing that allowing Chinese suppliers into Apple's supply chain could undermine domestic memory production...
>
> [Bloomberg's reported that U.S. lawmakers warned] other companies could follow Apple's lead, potentially undermining domestic memory production and planned investments in states such as Indiana, Idaho, New York, and Virginia... [T]he senators sought details about any information Apple has shared with CXMT during the component qualification process, noting that the transfer of controlled technical information to advanced chipmaking facilities in China may require a Commerce Department license.
The [8]blog MacRumors notes that Apple has already increased prices for Macs and iPads in June because of surging memory prices. Apple CEO Tim Cook said Thursday "we did it because we're in what I would characterize as a 100-year flood on memory pricing with exponential increases in memory prices."
> Cook did not comment on whether Apple plans to raise iPhone prices when the [9]iPhone 18 Pro models and first foldable launch this September, but multiple analysts believe prices will go up. Cook said Apple is expecting to pay higher memory costs in the September quarter, though Apple will be able to partially offset it with lower costs on some non-memory components and a stockpile of inventory.
[10]Sky News points out that "It was Tim Cook's final earnings appearance before his retirement after 15 years at the helm of the company."
> Apple, which recently topped Nvidia as the most valuable listed company, has been largely spared the volatility in share price seen by chipmakers and big spenders on artificial intelligence. Apple continues to generate cash without the huge investment spending that its Wall St peers are dealing with "and that showed across most parts of the operation," said Thomas Monteiro, an analyst at Investing.com.
[1] https://finance.yahoo.com/technology/article/apple-stock-slides-nearly-10-as-cook-warns-of-memory-shortage-impact-115246491.html
[2] https://mobile.slashdot.org/story/26/07/28/2121200/apple-retires-iphone-upgrade-program-for-klarna-backed-leases
[3] https://9to5mac.com/2026/07/29/apple-faces-bipartisan-senate-pushback-over-plans-to-buy-chinese-memory-chips/
[4] https://www.bloomberg.com/news/articles/2026-07-29/senators-warn-apple-not-to-buy-memory-chips-from-chinese-firms
[5] https://9to5mac.com/2026/06/17/apple-confirms-price-increases-are-coming-to-its-products-due-to-ram-shortage/
[6] https://9to5mac.com/2026/06/25/apple-price-increases-mac-ipad-more/
[7] https://9to5mac.com/2026/07/24/report-apple-and-micron-clash-before-trump-over-chinese-memory-chips/
[8] https://www.macrumors.com/2026/07/30/tim-cook-on-apple-price-increases/
[9] https://www.macrumors.com/roundup/iphone-18-pro/
[10] https://news.sky.com/story/apple-warns-of-memory-chip-shortage-for-key-devices-13568655
> During Apple's third quarter earnings call, Cook said the company paid significantly more for memory in the quarter and expects that to further increase in the current period. And while Apple is able to offset some of that price jump, it won't be able to tackle it all... The CEO said that iPhone and Mac sales outpaced Apple's own expectations and that a lack of flexibility in the supply chain is making it more difficult to keep up with demand.
Yahoo Finance cited an investment analyst who predicts overall gross margins for Apple's iPhone could drop from 38% to 34.5%. But another analyst sees a scenario where Apple "raises iPhone prices, unit growth will slow, and as unit growth slows, so will user growth, which we think ultimately will slow Services growth." (Still, Yahoo Finance predicts Apple's [2]new leasing program "could help address those concerns.")
Apple has another controversial option, [3]according to the blog 9to5Mac :
> [4]Bloomberg reports that US senators from both sides of the aisle are urging Apple CEO Tim Cook to commit by August 21 to not using memory chips from Chinese suppliers CXMT and YMTC....
>
> Apple is not required to obtain U.S. government approval to purchase chips from the companies, but doing so without the administration's support could expose it to significant political ramifications. Which is why, in an [5]interview with The Wall Street Journal ahead of Apple's recent [6]price hikes , Tim Cook said that "everything needs to be on the table," adding that "we should look at all supply...." More recently, the [7] Journal reported that Apple's use of Chinese memory chips could extend beyond China, with the company seeking the administration's blessing to use components from CXMT and YMTC in products sold elsewhere outside the US. The report also detailed Micron's efforts to persuade the administration to reject Apple's request, arguing that allowing Chinese suppliers into Apple's supply chain could undermine domestic memory production...
>
> [Bloomberg's reported that U.S. lawmakers warned] other companies could follow Apple's lead, potentially undermining domestic memory production and planned investments in states such as Indiana, Idaho, New York, and Virginia... [T]he senators sought details about any information Apple has shared with CXMT during the component qualification process, noting that the transfer of controlled technical information to advanced chipmaking facilities in China may require a Commerce Department license.
The [8]blog MacRumors notes that Apple has already increased prices for Macs and iPads in June because of surging memory prices. Apple CEO Tim Cook said Thursday "we did it because we're in what I would characterize as a 100-year flood on memory pricing with exponential increases in memory prices."
> Cook did not comment on whether Apple plans to raise iPhone prices when the [9]iPhone 18 Pro models and first foldable launch this September, but multiple analysts believe prices will go up. Cook said Apple is expecting to pay higher memory costs in the September quarter, though Apple will be able to partially offset it with lower costs on some non-memory components and a stockpile of inventory.
[10]Sky News points out that "It was Tim Cook's final earnings appearance before his retirement after 15 years at the helm of the company."
> Apple, which recently topped Nvidia as the most valuable listed company, has been largely spared the volatility in share price seen by chipmakers and big spenders on artificial intelligence. Apple continues to generate cash without the huge investment spending that its Wall St peers are dealing with "and that showed across most parts of the operation," said Thomas Monteiro, an analyst at Investing.com.
[1] https://finance.yahoo.com/technology/article/apple-stock-slides-nearly-10-as-cook-warns-of-memory-shortage-impact-115246491.html
[2] https://mobile.slashdot.org/story/26/07/28/2121200/apple-retires-iphone-upgrade-program-for-klarna-backed-leases
[3] https://9to5mac.com/2026/07/29/apple-faces-bipartisan-senate-pushback-over-plans-to-buy-chinese-memory-chips/
[4] https://www.bloomberg.com/news/articles/2026-07-29/senators-warn-apple-not-to-buy-memory-chips-from-chinese-firms
[5] https://9to5mac.com/2026/06/17/apple-confirms-price-increases-are-coming-to-its-products-due-to-ram-shortage/
[6] https://9to5mac.com/2026/06/25/apple-price-increases-mac-ipad-more/
[7] https://9to5mac.com/2026/07/24/report-apple-and-micron-clash-before-trump-over-chinese-memory-chips/
[8] https://www.macrumors.com/2026/07/30/tim-cook-on-apple-price-increases/
[9] https://www.macrumors.com/roundup/iphone-18-pro/
[10] https://news.sky.com/story/apple-warns-of-memory-chip-shortage-for-key-devices-13568655
This is ridiculous (Score:2)
by RUs1729 ( 10049396 )
I have no love for Apple but I am skeptical that whatever is going on justifies that its stock should be punished like that. Investors are a hysterical bunch with a sheep-like mindset. It makes for a depressing thought the fact that such idiots have a big influence on the global economy. Bloody buffoons, always at the core of self-fulfilling negative prophesies.
Re: This is ridiculous (Score:2)
by liqu1d ( 4349325 )
It's a hell of a drop for a few % reduced profit per phone. Market seems a bit skittish I wonder why that is. Tempting to buy apple now I imagine they'll make the 10% back soonish.
Re: (Score:2)
by organgtool ( 966989 )
Apple's P/E ratio has nearly doubled over the last ten to fifteen years. They've benefited from irrational growth during that time and now they have to suffer a potentially irrational loss. The big players get more attention, so the market has a tendency to overreact to good or bad news about them. If you're that incensed by it, put your money where your mouth is and buy the dip.
Re:How should they respond? (Score:4, Interesting)
By the time they bring a memory plant online, the AI bubble might have crashed. That's why nobody actually wants to do this.
Re: (Score:1)
Not too big of a risk for Apple which has to buy the chips anyway, but they'd rather just let their customers be gouged.
Re: (Score:3)
Reminder that "too big to fail" is still "valid" and that no bubble will ever burst until we have slowly and unrecoverably regressed to before the stone age. There will never be space travel or flight or machines because our collective IQ will have dropped to the mid double digits. That is where we are going should these things continue.
Re: (Score:2)
Apple is so obsessed with vertical integration that it's hard to fathom how this hasn't already happened. It's not like they don't have the money or clout to hire the talent and procure the equipment.
Apple as a House of Cards? (Score:2)
Not really much of a coincidence because Apple news is frequent, but I just finished The One Device by Brian Merchant. I recommend it fairly strongly for folks who still enjoy reading fat books. Any left on ye olde Slashdot? Also interested in later books on the topic, but my main theoretical conclusion is that the Chinese must be putting backdoors into many or most of the iPhones built in their jurisdiction. Sort of a twisted joke, but I actually imagine that Huawei has the competence to support two vers