Apple Shifts Focus to Chip Shortages and Rising Memory Costs

Apple Inc. (AAPL) faces new challenges, shifting from tariffs to chip shortages and rising memory costs. During its fiscal Q3 2026 earnings call on July 30, 2026, management highlighted these issues, which are impacting both sales growth and profit margins. The chip shortage, primarily affecting advanced production lines for Apple’s processors, is slowing revenue growth. Meanwhile, memory prices are rising rapidly, forcing Apple to increase its own prices and reducing gross margins.

The focus on chips and memory marks a change from 2025, when tariffs and manufacturing locations dominated discussions. Tariffs had caused a 30% drop in Apple’s stock from February to June 2025, as the iPhone, contributing 50% of Apple’s revenue, was heavily affected. However, tariff refunds are now providing some relief, though this benefit is expected to shrink.

Looking ahead, the memory cost increase appears more concerning than the chip shortage, which is driven by higher-than-expected demand for products like the iPhone and Mac. Management expects memory prices to continue rising beyond September, but has not provided guidance for future quarters. The company’s gross margin for the September quarter is forecasted to be between 47% and 48%, down from 50.1% in the June quarter.

Investors should monitor Apple’s performance closely, as a gross margin below 47% could signal that memory costs or tariff refunds are deviating from expectations. While Apple’s stock is priced at 37.9 times earnings, significantly higher than the S&P 500’s 21.5, understanding these challenges is crucial for shareholders.