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Apple faces unprecedented memory cost increases as RAM prices continue to surge, manufacturing bill climbs by $33 billion — rising component expenses threaten margins through the holiday quarter and into 2027

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Apple faces unprecedented memory cost increases as RAM prices continue to surge, manufacturing bill climbs by $33 billion — rising component expenses threaten margins through the holiday quarter and into 2027

Apple is about to feel the squeeze from rising memory prices, with the cost of RAM climbing just as the company heads into its busiest shopping season. According to Reuters, Apple expects to pay more for memory in the December quarter, with the CEO, John Ternus, describing the current price increases as “unprecedented. The company has so far managed to soften the blow by using memory bought at lower prices, cutting costs elsewhere and raising prices on some products. However, it is reported that its manufacturing bill has climbed by $33 billion in just a few months.

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But that cushion is getting thinner, and Apple expects memory purchases to become even more expensive into 2027. “What we're seeing with memory pricing right now is unprecedented. And as we said earlier in the September quarter, we did see higher memory costs as compared to the June quarter, which were partly offset by the benefit of carrying inventory and lower costs on certain non-memory components. Now for the December quarter, we expect even higher memory costs, partly offset by a few factors. ” Ternus said during Apple’s November 2 earnings call .



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