AssetID: 56128572
Headline: UNCAPTIONED: Apple Warns Rising Memory Costs Will Squeeze Holiday Margins
Caption: Apple Warns Rising Memory Costs Will Squeeze Holiday Margins. Apple warns rising memory chip costs will squeeze holiday quarter margins despite stronger than expected earnings. It forecasts gross margins of 45 to 46 percent, down from 47.9 percent the previous quarter. Shares initially fell four percent during the earnings call before recovering to a two percent decline. Quarterly revenue reached $114.48 billion, with earnings of $2.10 per share beating analyst forecasts of $1.99. Higher iPhone and MacBook prices helped offset component costs, but further memory price increases are expected. Apple says purchasing commitments rose $33 billion as it worked with suppliers to secure chip supplies. Demand for its foldable iPhone Duo exceeds supply, while Apple is replacing devices with display problems. The company also plans higher iCloud+ subscription prices to offset AI costs, but provided no figures. Instructions: THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT
Keywords: Current Affairs & Politics,Apple,memory chip prices,rising RAM costs,holiday quarter,profit margins,Apple earnings,$114.48 billion revenue,iPhone,MacBook,semiconductor supply,chip shortage,supplier commitments,iPhone Duo,foldable iPhone,iCloud+ subscription,AI investment
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