Tim Cook Warned of a "100-Year Flood" in Memory Chip Pricing on His Last Earnings Call. Should Apple Investors Be Worried About Margins?
Apple is making the right moves to keep margins high, but shareholders should keep an eye on this space.
Overview
Tim Cook is about to hand the reins of Apple (NASDAQ: AAPL) to incoming CEO John Ternus, but he left shareholders with a bit of bad news on his last earnings call, saying the company is currently facing a "100-year flood"-level event when it comes to memory prices.
Cook wasn't being dramatic. Some memory prices skyrocketed by 90% in the first quarter of 2026 alone as tech companies rushed to buy memory for devices and data centers. The shortage caused prices to spike, and it could be years before the supply-and-demand imbalance is resolved.
Details
I'm an Apple shareholder, and I've been keeping a close eye on the company's response to rising memory costs. Here's why I don't think it's time to worry just yet.
Source
Originally published at www.fool.com.