Apple Prepares for Foldable Future Amidst Memory Pricing Crisis

Apple's September event is on the horizon, and investors are eagerly anticipating what the tech giant has in store. The company is expected to showcase new foldable hardware and next-generation chips, but one question lingers: can Apple maintain its decade-long streak of rewarding patient shareholders amidst a memory pricing crisis and China exposure?

One investor who remains confident in Apple's prospects is an individual who has been buying the stock regularly. They point to several factors that make them continue to click 'buy' on Apple (NASDAQ:AAPL). The company's massive install base of over 2.5 billion active devices as of Q1 FY2026 provides a significant monetization channel, with Services revenue hitting $30.74B in Q3 FY2026 at a 75.6% gross margin.

Apple's financials also support the conviction, with revenue rising 16.36% YoY to $109.42B in Q3 FY2026 and iPhone growth of 22% year-over-year on the iPhone 17 lineup. EPS came in at $2.02 versus $1.89 estimate, marking the ninth straight beat. Return on invested capital sits at 53.35%, with an operating margin of 31.97%. The individual notes that companies compounding at these spreads for years tend to make patient shareholders wealthy.

The author acknowledges one risk they refuse to wave away: memory pricing, which CFO Kevan Parekh attributed as more than 100% of the sequential gross-margin decline into the September quarter. However, Apple raised prices on iPad and Mac, guided September-quarter revenue growth of 9% to 11%, and still projects a gross margin of 47% to 48%. Pricing power answers input inflation.