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4h ago

Cook Hands Apple CEO Role to John Ternus as Memory Prices Threaten Hardware Margins

Soaring AI-driven DRAM costs force Apple to raise device prices and warn of supply limits that will be an early test for the incoming CEO.

John Ternus and Tim Cook at Apple TV's "Ted Lasso" Season 4 Premiere held at Academy Museum of Motion Pictures on July 27, 2026 in Los Angeles, California.
Apple has 1.5 billion paid subscriptions across its services platform, and services revenue has been growing consistently
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Overview

  • Apple confirmed on Thursday that Tim Cook gave his final earnings call as CEO and will become executive chairman on September 1, when John Ternus will assume the chief executive role.
  • The company reported a strong Q3 with $109.4 billion in revenue and $29.8 billion in net profit while highlighting 1.5 billion subscriptions and more than 2.5 billion active devices.
  • Cook described a sharp spike in memory costs as a “100-year flood,” saying Apple has already raised prices on some Macs and iPads and expects memory costs to climb further in the current quarter.
  • Executives warned that AI-driven demand for premium DRAM and high-bandwidth memory — supplied mainly by SK Hynix, Samsung, and Micron — could constrain iPhone, Mac, and iPad shipments this fall and pressure gross margins.
  • Investors and analysts are watching the transition closely because the new CEO will face near-term choices on pricing, inventory and product timing while legal and market scrutiny of the concentrated memory supply chain continues.