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Apple Posts Record June Quarter but Warns of Memory Costs and Chip Limits

Rising DRAM and NAND prices and tight advanced‑node capacity are set to shave gross margin and have prompted a sharp market reaction.

Overview

  • Apple reported a record June quarter with $109.4 billion in revenue and $2.02 diluted EPS, driven by a $54.3 billion iPhone haul, according to its July 30 earnings release.
  • Management guided September‑quarter revenue growth to 9%–11% and said supply limits stem from pulling forward inventory and constrained advanced‑chip node capacity rather than weak end demand.
  • CFO Kevan Parekh blamed sharply higher DRAM and NAND costs for a guided gross‑margin drop from about 50.1% to roughly 47%–48%, and called memory pricing an extreme market event.
  • Markets reacted strongly: shares fell roughly 7% to as much as 10% in the hours after the report as investors weighed near‑term margin risk despite the strong quarter.
  • Apple is keeping capex modest, reported using third‑party AI compute arrangements rather than building large in‑house farms, and announced a CEO transition to John Ternus effective Sept. 1, factors that shape its longer‑term investment and product strategy.