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AAPL Up 3.3% to YTD High as Apple Warns Memory Shortage Worsens, Squeezes Margins

Apple warned the memory shortage driven by AI demand is intensifying, forecasting June-quarter gross margins of 47.5%-48.5% (down from 49%) and potential $100 price hikes on premium iPhones. CEO Tim Cook flagged rising memory costs as an ongoing headwind on the Q2 earnings call, despite 17% revenue growth and 14-17% June guidance. Shares climbed ~3.3% to a year-to-date high, buoyed by confidence in multi-year supplier deals, while boosting memory stocks like Micron (up 570% yearly).

Category

Apple

Sentiment

Mixed

Event

Market commentary

Reading time

1 min