{"id":23161,"date":"2026-07-31T13:51:59","date_gmt":"2026-07-31T08:51:59","guid":{"rendered":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=23161"},"modified":"2026-07-31T13:51:59","modified_gmt":"2026-07-31T08:51:59","slug":"tim-cook-signed-off-on-his-final-apple-earnings-call-with-a-warning-about-a-hundred-year-flood-in-memory-chip-pricing","status":"publish","type":"post","link":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=23161","title":{"rendered":"Tim Cook signed off on his final Apple earnings call with a warning about a \u2018hundred year flood\u2019\u00a0in memory chip pricing"},"content":{"rendered":"<p><script>\r\n  atOptions = {\r\n    'key' : '644b717812d811d6a1c1fc5b6ccd6fa6',\r\n    'format' : 'iframe',\r\n    'height' : 90,\r\n    'width' : 728,\r\n    'params' : {}\r\n  };\r\n<\/script>\r\n<script src=\"https:\/\/www.highperformanceformat.com\/644b717812d811d6a1c1fc5b6ccd6fa6\/invoke.js\"><\/script>\r\n<br \/>\n<\/p>\n<div>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START --><a href=\"https:\/\/fortune.com\/company\/apple\/\" data-ylk=\"slk:Apple;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;Apple&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Apple<\/a> said it is facing severe supply constraints that will affect sales of iPhones and Macs in the months ahead, underscoring the challenges looming over the company as Tim Cook prepares to hand over the CEO reins.<!-- HTML_TAG_END -->  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->In his final earnings call as CEO, Cook said he has never been more optimistic about the opportunities ahead for Apple. &#8220;I am beyond excited,&#8221; said Cook, who has led the company for 15 years and will pass the <a href=\"https:\/\/fortune.com\/2026\/04\/20\/apple-ceo-tim-cook-stepping-down-hardware-exec-john-ternus-new-ceo\/\" data-ylk=\"slk:CEO%20baton%20to%20John%20Ternus%20in%20September;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;CEO baton to John Ternus in September&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">CEO baton to John Ternus in September<\/a>. But Cook&#8217;s confidence in the future stood in contrast to the picture that he and other executives painted of the current business conditions.\u00a0<!-- HTML_TAG_END -->  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->&#8220;We&#8217;re seeing some very significant constraints currently, with limited flexibility in the supply chain,&#8221; Cook said. &#8220;There&#8217;s a quarter where we&#8217;re going to be scrambling on the supply side,&#8221; he acknowledged at another point.\u00a0<!-- HTML_TAG_END -->  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->The supply crunch is making it more difficult for Apple to obtain the advanced processors it needs for its phones and computers. And that translates into lower revenue.\u00a0<!-- HTML_TAG_END -->  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->Sales of the iPhone, which accounts for roughly half of Apple&#8217;s business, will grow at a &#8220;mid-teens&#8221; percentage rate in the current quarter, Apple said, forecasting a significant deceleration from the 22% growth the iPhone business posted in the recently ended quarter. Total revenue in the current quarter will grow between 9% and 10% year-over-year, which was below the 12% rate expected by analysts.<!-- HTML_TAG_END -->  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->Gross profit margins, which came in at 48% of revenue (excluding the benefit of tariff refunds) in the most recent quarter, will come under pressure in the current quarter, Apple said.\u00a0<!-- HTML_TAG_END -->  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->Shares of Apple fell as much as 8% in after hours trading on Thursday following the earnings results, before regaining some ground, with the stock later trading down roughly 6% from its closing price of $333.85.\u00a0<!-- HTML_TAG_END -->  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->Apple, the world&#8217;s most valuable company (market cap $4.9 trillion!), has been one of the best performers among Big Tech stocks this year, with its shares up 23% in 2026. While Apple has been late to the AI game and struggled to develop its own AI models, investors have come to appreciate that the company is not locked in the AI infrastructure arms race that has swelled capital expenditures at <a href=\"https:\/\/fortune.com\/company\/facebook\/\" data-ylk=\"slk:Meta;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;Meta&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Meta<\/a>, Google, <a href=\"https:\/\/fortune.com\/company\/microsoft\/\" data-ylk=\"slk:Microsoft;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;Microsoft&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Microsoft<\/a>, and <a href=\"https:\/\/fortune.com\/company\/amazon-com\/\" data-ylk=\"slk:Amazon;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;Amazon&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Amazon<\/a>.\u00a0<!-- HTML_TAG_END -->  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->Last week, Google-parent company <a href=\"https:\/\/fortune.com\/2026\/07\/23\/ai-big-tech-never-spend-more-than-earns-wall-street-hates-it\/\" data-ylk=\"slk:Alphabet's%20stock%20plunged%207%25;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;Alphabet's stock plunged 7%&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Alphabet&#8217;s stock plunged 7% <\/a>after it raised its capex forecast for the year to above $200 billion and reported its first ever negative free cash flow. Meta&#8217;s stock took <a href=\"https:\/\/fortune.com\/2026\/07\/29\/meta-earnings-zuckerberg-hints-cloud-business-free-cash-flow-capex\/\" data-ylk=\"slk:a%20similar%20drubbing;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;a similar drubbing&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">a similar drubbing<\/a> this week.\u00a0<!-- HTML_TAG_END -->  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->While Apple is not spending hundreds of billions in capex, its business is still feeling the effects of the AI arms race, specifically when it comes to memory chips. The demand for memory chips in the data centers being built to power AI is causing a shortage and sending prices skyrocketing.\u00a0<!-- HTML_TAG_END -->  <\/p>\n<\/p><\/div>\n<div style=\"display: none\" data-testid=\"read-more\">\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->In June, Apple was forced to<a href=\"https:\/\/fortune.com\/2026\/06\/26\/apple-loses-iron-grip-pricing-power\/\" data-ylk=\"slk:raise%20prices%20of%20its%20Macs%20and%20iPads;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;raise prices of its Macs and iPads&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"> raise prices of its Macs and iPads<\/a> to account for the inrecased cost of memory chips. &#8220;We did it because we&#8217;re in what I would characterize as a hundred year flood on the memory pricing,&#8221; Cook said on Thursday&#8217;s earnings call.<!-- HTML_TAG_END -->  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->He lamented that the DRAM memory chip market is essentially owned by three companies, <a href=\"https:\/\/fortune.com\/company\/micron-technology\/\" data-ylk=\"slk:Micron;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;Micron&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Micron<\/a>, <a href=\"https:\/\/fortune.com\/company\/sk-holdings\/\" data-ylk=\"slk:SK;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;SK&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">SK<\/a> Hynix, and <a href=\"https:\/\/fortune.com\/company\/samsung-electronics\/\" data-ylk=\"slk:Samsung;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;Samsung&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Samsung<\/a>.\u00a0 &#8220;If there were more suppliers that would be good. It would help us on\u00a0 the supply side, and perhaps the pricing side,&#8221; Cook said, adding somewhat cryptically that Apple is &#8220;evaluating all options.&#8221;<!-- HTML_TAG_END -->  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->Asked about Apple&#8217;s AI offerings, including the upcoming Siri AI, Cook said the company saw an opportunity in running more AI directly on users&#8217; devices, an approach that Apple believes can appeal to privacy-minded users. &#8220;The ability to run some percentage of requests on-device is also very strategic, sort of a competitive weapon if you will,&#8221; Cook said.\u00a0<!-- HTML_TAG_END -->  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->But he also noted that AI capabilities could lead to an increase in users of Apple&#8217;s iCloud offering\u2013a potential boost to Apple&#8217;s Services business, its second largest business unit, with $30 billion in revenue last quarter.<!-- HTML_TAG_END -->  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->Apple&#8217;s overall revenue in the three months ended June 30 totalled $109.4 billon, up 16% year over year, and roughly in line with analyst estimates. The company posted net income of $29.8 billion, or $2.02 per share, versus the $1.89 EPS expected by analysts. Apple said that roughly 11 cents of the EPS was attributed to a refund from President Trump&#8217;s tariffs.\u00a0<!-- HTML_TAG_END -->  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->As for<a href=\"https:\/\/fortune.com\/2026\/07\/25\/apple-ceo-john-ternus-tim-cook-steve-jobs-iphone-design\/\" data-ylk=\"slk:incoming%20CEO%20John%20Ternus;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;incoming CEO John Ternus&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"> incoming CEO John Ternus<\/a>, he was present for the earnings call, but did deliver prepared remarks and was not made available as an executive available for the Q&amp;A portion. That didn&#8217;t stop one analyst from trying.\u00a0<!-- HTML_TAG_END -->  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->The analyst wanted to know: How does Ternus view the competitive landscape, especially at a time when new competitors like SpaceX and OpenAI could be preparing to offer <a href=\"https:\/\/fortune.com\/2026\/07\/22\/sam-altman-and-jony-ive-formed-a-dream-team-to-reinvent-hardware-now-its-at-the-center-of-a-battle-for-openais-future\/\" data-ylk=\"slk:AI-powered%20hardware%20devices;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;AI-powered hardware devices&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">AI-powered hardware devices<\/a> that would compete with Apple?<!-- HTML_TAG_END -->  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->&#8220;I would just reiterate what Tim said,&#8221; Ternus said. &#8220;There is so much opportunity for us, with everything that&#8217;s happening in the space. We&#8217;re just really focused on our plans, and really excited about it.&#8221;<!-- HTML_TAG_END -->  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><!-- HTML_TAG_START -->This story was originally featured on <a href=\"https:\/\/fortune.com\/2026\/07\/30\/tim-cook-signed-off-on-his-final-apple-earnings-call-with-a-warning-about-a-hundred-year-flood-in-memory-chip-pricing\/\" data-ylk=\"slk:Fortune.com;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;Fortune.com&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Fortune.com<\/a><!-- HTML_TAG_END -->  <\/p>\n<\/p><\/div>\n<script async=\"async\" data-cfasync=\"false\" src=\"https:\/\/pl30214220.effectivecpmnetwork.com\/9ab3d4df8a7e1a6171e16ddbf732cc19\/invoke.js\"><\/script>\r\n<div id=\"container-9ab3d4df8a7e1a6171e16ddbf732cc19\"><\/div>\r\n\n","protected":false},"excerpt":{"rendered":"<p>Apple said it is facing severe supply constraints that will affect sales of iPhones and Macs in the months ahead, underscoring the challenges looming over the company as Tim Cook prepares to hand over the CEO reins. In his final earnings call as CEO, Cook said he has never been more optimistic about the opportunities&#8230;<\/p>\n","protected":false},"author":1,"featured_media":23162,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s.yimg.com\/lo\/mysterio\/api\/43447E8DE647CCF040A04BA253965074DCE90135D21DD231E5D79163D63FA52F\/subgraphmysterio\/resizefill_w1200_h800;quality_80;format_webp\/https:%2F%2Fmedia.zenfs.com%2Fen%2Ffortune_175%2F7523c689625dcc171d64edbece964835","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-23161","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-trending-viral-news"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/23161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23161"}],"version-history":[{"count":0,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/23161\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/media\/23162"}],"wp:attachment":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}