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Tim Cook: Apple 'Reluctantly Raised Prices' Due to...
Tim Cook said Apple is using lower-priced inventory to offset DRAM costs, but that cushion will shrink as memory prices keep rising.
- Apple posted fiscal third-quarter revenue of $109.42 billion, topping expectations, but shares slid 6.33% in after-hours trading Thursday amid rising memory component cost concerns.
- Rising memory costs forced the company to reluctantly raise prices for Macs, with Apple CEO Tim Cook describing the situation as a "100-year flood on memory pricing."
- Explaining the pricing strategy, Cook noted Apple does not rely on a single formula, instead weighing unit sales and revenue while using existing inventory to offset surging costs.
- Morgan Stanley analyst Erik Woodring questioned the company's margin focus during the earnings call, prompting Cook to state, "On the pricing front, we reluctantly raised prices, I would say."
- Cupertino expects September-quarter revenue growth to slow to 9% to 11% year over year, as memory costs remain elevated and future device price hikes remain uncertain.
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Apple’s stock slides on supply snags despite record iPhone sales
Apple delivered its best-ever June quarter for iPhone sales and watched its shares fall anyway, as a warning about supply constraints and rising costs unnerved investors. The stock dropped more than 7% before Friday’s open, wiping out something in the region of $360bn in market value, days after Tim Cook had already warned that a memory-chip […] This story continues at The Next Web
·Amsterdam, Netherlands (Kingdom of the)
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Why Are Apple Products Getting More Expensive? Tim Cook Has the Answer
Apple CEO Tim Cook says rising memory component costs have forced the company to increase prices for products including iPads, Macs, and potentially the upcoming iPhone 17. Tim Cook says Apple's recent product price hikes are driven by soaring memory component costs rather than company preference.
·New York, United States
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Coverage Details
Total News Sources24
Leaning Left4Leaning Right3Center3Last UpdatedBias Distribution40% Left
Bias Distribution
- 40% of the sources lean Left
40% Left
L 40%
C 30%
R 30%
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