Apple Faces ‘Century Flood’ in Memory Chip Prices as Tim Cook Delivers Final Earnings Call

Apple is confronting a ‘century flood’ in memory‑chip pricing that threatens to shadow its iPhone and Mac sales.

Tim Cook’s Farewell Address and Outlook

Tim Cook, announcing his handover to John Ternus after 15 years at the helm, described himself as “beyond excited” about Apple’s future and expressed unprecedented optimism. Yet he warned of significant supply constraints, noting that the company will “scramble on the supply side for a quarter.”

Memory‑Chip Crisis: The Triple‑Headed Monopoly

■The DRAM market is dominated by three firms: Micron, SK Hynix, and Samsung.

■Prices have surged to a level Cook likened to a “hundred‑year flood,” prompting Apple to raise Mac and iPad prices.

■Apple signaled that it is “evaluating all options,” hinting at a search for alternative suppliers.

Earnings Snapshot and Market Reaction

■iPhone growth decelerates from 22% YoY to an estimated mid‑teens range this quarter.

■Total revenue is projected to grow 9‑10% YoY, below analysts’ 12% forecast.

■Gross margin stands at 48% (excluding tariff refunds) and is expected to face pressure.

■The stock dropped 8% in after‑hours trading, later settling about 6% lower, closing around $333.85.

AI Playbook and Services Upside

Apple is betting on on‑device AI to appeal to privacy‑concerned users, a strategy that could boost iCloud usage and fuel growth in its Services segment, which posted $30 billion in revenue last quarter.

Gökberk Uçar: The memory‑chip squeeze is more than a cost issue; it is a strategic inflection point in the AI infrastructure race. Re‑engineering relationships with the three DRAM giants will be essential for capacity expansion and price stability. In the short term, Apple’s price hikes and margin pressure may keep the stock volatile, but the services thrust and on‑device AI roadmap preserve long‑term value creation.