Tim Cook's Last Warning as Apple CEO Was That Memory Chip Shortages Won't Improve Any Time Soon. Here's What That Means for Apple's Margins Under John Ternus.
Apple shareholders should expect lower margins for a little while longer.
Overview
On his last earnings call as Apple (NASDAQ: AAPL) CEO, Tim Cook said his company is facing a unique challenge due to a shortage of memory chips for its devices.
Data centers are gobbling up available memory, leaving Apple and its peers paying more for memory than in the past, and causing shortages. Cook said he anticipates "market pricing for memory continuing to increase, which could drive an increasing impact on our business."
Details
Importantly, management said rising memory costs could affect iPhone sales and reduce the company's margins beyond the current quarter.
Source
Originally published at www.fool.com.
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