Memory chip price increases are affecting Apple's profit

Apple's sales beat forecasts, though rising memory chip prices pushed up the company's costs. This was John Ternus's first earnings report as Apple's chief executive.

Apple's profit margin fell to 47.9% in the September quarter, and the company expects a figure of 45-46% for December. Costs are also being driven up by the development of an AI-enhanced Siri.

The company is still using chips purchased earlier at lower prices, though their cost will keep rising going forward. Apple has also significantly increased orders for future production.

Due to expensive components, the company has already raised prices on some devices. Demand for the iPhone 18 Pro is high, though further price increases could affect sales.

Source: Reuters