Apple Record Quarter, Memory Prices Spike

Apple just posted a record $114.5 billion quarter, but new CEO John Ternus now faces a double punch: surging memory costs and tight supply on the flashy iPhone Duo. The numbers are strong—iPhone revenue up 17% to $57.58 billion, Mac up 24%, and Services at an all-time high—but the gains lean heavily on premium pricing and mix, with the standard iPhone 18 models still waiting in the wings. Ternus is betting big on high-end devices to hold margins, but a spike in memory prices threatens to chip away at profits by over a billion dollars this holiday quarter.

Here’s the catch: while Apple leans into its top-shelf lineup, some cracks are showing. iPad and Wearables both fell, and Apple’s “AI moment” for the Mac needs to prove it’s not just launch hype. Meanwhile, the iPhone Duo’s supply crunch is real—backorders stretch into 2027, and any slip could send customers running to rivals like Samsung or Google, especially in China where, despite 21% growth, Apple still missed expectations. The playbook works if scarcity drives up average selling prices, but too much delay and Apple risks handing over the foldable crown.

Featuring reporting from The Verge, Reuters, and Business Insider.

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