Apple Stock Faces Memory Costs and Supply Limit Headwinds
Apple's stock has risen by 32% in a year, but investors are worried about what could reverse this trend. One major concern is rising memory costs, which will cut into Apple's profit per device and make it harder for the company to build enough iPhones, Macs, and iPads. Management said that memory prices will continue to rise beyond the September 2026 quarter.
In its recent earnings call, management guided gross margin at 47% to 48% for the September 2026 quarter, but this could be a challenge to meet given the rising memory costs. A decline in gross margin below 47% would put it under the previous quarter's range. Additionally, Apple's supply limits on iPhones, Macs, and iPads will continue to be a problem, with management expecting them to grow sharply in the September 2026 quarter.
The demand for Apple's new iPhone 18 Pro and iPhone Duo is another factor that could impact the stock. Management guided iPhone revenue to grow in the mid-teens in the September 2026 quarter, but the early evidence is mixed, with some customers queuing overnight for the iPhone 18 Pro in India.
Overall, Apple's stock price will be influenced by a combination of these factors, and investors should watch for guidance on gross margin and supply limits in the company's next report on October 29, 2026.