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Tuesday, 3 November 2026

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Apple’s Record iPhone Sales Cannot Shield It From Rising Memory Costs

Apple has reported record quarterly iPhone revenue, but rising memory-chip costs are putting pressure on profit margins. The contrast reveals how AI infrastructure demand can benefit semiconductor suppliers while increasing manufacturing costs for consumer electronics companies.

By Katherine (Kay)3 min read

Kuala Lumpur, 3 November 2026 – Apple’s record iPhone sales have not been enough to reassure investors as rising memory-chip prices threaten the company’s profitability.

The technology group reported September-quarter iPhone revenue of US$57.58 billion, exceeding analysts’ expectations of approximately US$56.54 billion. However, Apple forecast a December-quarter gross margin of 45% to 46%, below the 47.9% recorded in the preceding quarter.

Its shares fell approximately 4% in premarket trading on 3 November as investors assessed the impact of higher component costs.

The results highlight a growing contradiction within the technology industry. Artificial intelligence is driving enormous investment in computing infrastructure, but that demand is also increasing costs for companies manufacturing consumer electronics.

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Author

  • Katherine (Kay)

    Kay like to explores the intersection of money, power, and the curious humans behind them. With a flair for storytelling and a soft spot for market drama, she brings a fresh and sharp voice to Southeast Asia’s business scene.
    Her work blends analysis with narrative, turning headlines into human stories that cut through the noise. Whether unpacking boardroom maneuvers, policy shifts, or the personalities shaping regional markets, Kay offers readers a perspective that is both insightful and relatable — always with a touch of wit.