Rumor
Apple forecasts rising memory pricing to impact margins through 2026
Wednesday, January 28, 2026 at 10:59 AM
Apple expects a significant increase in memory pricing beyond the second quarter of 2026, which will increasingly impact gross margins. While the impact was minimal in the first quarter, the company is factoring higher costs into its future guidance and exploring management options.
Context
Apple reported record 1Q26 revenue of $143.8 billion but cautioned that surging memory costs will increasingly pressure margins through 2026. While the December quarter’s gross margin of 48.2% was largely unaffected, management expects a more significant impact starting in 2Q26. This trend is driven by a sharp rise in DRAM and NAND pricing as AI-related demand tightens the global semiconductor supply chain.
For the March quarter, Apple issued a resilient gross margin guide of 48% to 49%, buoyed by strong services growth and favorable product mix. However, with market prices expected to rise significantly beyond the current period, the company is preparing for prolonged headwinds. Apple plans to leverage its massive supply chain scale to secure long-term inventory and may absorb these costs to keep iPhone 18 pricing stable, prioritizing market share over immediate margin gains as it navigates the volatile hardware environment.
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