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Apple Blames '100-Year Flood' in Memory Prices — And Hints the DRAM Market Needs More Competition

Reviewed by ClearTape · Source: Benzinga

Key takeaways

Apple's comments hint at the need for more competition in the DRAM market, driven by AI demand and soaring memory prices.
Apple's gross margins would have been materially stronger without the impact of rising memory costs
Memory accounted for more than the entire sequential decline in adjusted gross margin between the March and June quarters
Apple expects to pay even higher memory costs

What happened

Apple CEO Tim Cook described soaring memory prices as a '100-year flood' and hinted the DRAM market needs more competition.

Why it matters

Apple's comments point to a broader shift in the semiconductor industry, where AI demand is reshaping one of the most concentrated markets, with memory suppliers in a position of unusual strength.

Short-term and longer-term

Short-term. Apple's comments hint at the need for more competition in the DRAM market, driven by AI demand and soaring memory prices.

Longer-term. Apple's comments point to a broader shift in the semiconductor industry, where AI demand is reshaping one of the most concentrated markets, with memory suppliers in a position of unusual strength.

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