Apple Faces Memory Chip Cost Pressure Ahead of Q4 Earnings

Apple's December quarter results may be impacted by rising memory chip costs, according to analysts at Bernstein.

The firm has maintained its Outperform rating and $370 price target on Apple, but warned investors about the potential downside risks to gross margin and earnings.

Bernstein estimates that the cost increase for the 256GB iPhone 18 Pro Max is due to sharply higher memory costs, with DRAM and NAND making up around 90% of the estimated $168 year-over-year increase.

The firm expects higher-end models to make up a significant portion of units sold, but notes that demand is concentrated in the lower-margin 256GB storage option.