Apple lost about $140 billion of market value after hours on Monday after CEO John Ternus called memory pricing 'unprecedented' and guided December-quarter gross margin to 45% to 46%. The article argues that memory makers such as Micron currently hold pricing power, so the higher costs Apple pays flow to them. Micron's gross margin rose from -0.7% in the quarter ended November 2023 to 86.8% in its latest quarter, and analysts expect its normalized EPS to more than double, from $75.52 in fiscal 2026 to $176.50 in fiscal 2027. Apple has raised prices on Macs, iPads and iPhones and can absorb a few hard quarters, while the main risks for Micron are supply catching up with demand and higher prices reducing Apple's sales. Views differ on the shortage's length: SK hynix expects it to run through 2030, while Dell says chip supply is much closer to demand.
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AAPL
▼ Likely negativeApple Inc.
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Technology Hardware, Storage & Peripherals |
| Market cap | $5.1T |
| Close on 11/02/2026 | 338.32 |
| Change that session | -1.83% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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