[News] Ahead of Cook’s Final Apple Earnings Call: Rising Memory Costs and Potential Sep. iPhone Price Hike in Focus
Apple is set to announce its FY26 third-quarter earnings soon, which will also mark Tim Cook’s last appearance as CEO, with iPhone pricing and memory costs expected to be key areas of focus. According to Reuters, Apple’s decision to hold iPhone prices steady is expected to deliver its strongest June-quarter sales growth in five years, though investors will be watching closely to see how long the company can maintain current pricing.
Apple raised prices for its iPad and MacBook lineup last month to offset rising costs but has yet to increase iPhone prices, unlike rival smartphone makers that have passed higher costs on to consumers. However, Reuters adds that Apple could raise iPhone prices later in 2026, potentially alongside the launch of its next iPhone series in September.
Amid rising memory costs, Bloomberg reports that Apple has been negotiating to acquire chips from Chinese memory makers as it grapples with a global memory shortage that has sent memory prices soaring. The report adds that a bipartisan group of U.S. senators has urged Apple to abandon any efforts to purchase chips from Chinese manufacturers. Rising memory costs have become an increasingly important concern for smartphone makers. TrendForce forecasts global smartphone production to decline approximately 16.2% YoY to 1.051 billion units in 2026.
iPhone Revenue Forecast to Jump 20%
As Reuters notes, Apple is expected to report fiscal third-quarter revenue of US$108.65 billion for the April–June period, up 15.5% year over year, according to LSEG data. Profit is forecast to increase 18.1%, although gross margin is expected to decline to 47.9% from 49.3% in the previous quarter. Yahoo Finance projects iPhone revenue to reach US$53.5 billion, up 20% from US$44.5 billion in Apple’s fiscal third quarter of 2025.
Strong iPhone sales have also supported Apple’s market performance. Reuters notes that robust iPhone demand, coupled with the company’s relatively lower AI infrastructure spending, has helped Apple reclaim the title of the world’s most valuable company from NVIDIA.
Qualcomm Expects Apple Business to Decline
Meanwhile, ahead of Apple’s earnings announcement, Qualcomm signaled that revenue from Apple products is declining. According to another Reuters report, Qualcomm forecast fourth-quarter profit below analysts’ estimates and said revenue from Apple products would fall faster than previously expected. The company also said supply constraints would reduce its share of components in the next iPhone to well below its earlier estimate of 20%.
Qualcomm’s expectation of declining Apple-related revenue is linked to Apple’s transition to in-house modem chips. According to MacRumors, Apple has already introduced its own modems in the iPhone 16e, iPhone 17e, and iPhone Air, with the iPhone 18 lineup rumored to adopt them more broadly.
Separately, ZDNet reports that Qualcomm announced price increases for its major products, effective in September, during its earnings conference call. The company said it is implementing double-digit price hikes across its product portfolio, with the impact expected to be reflected gradually over the coming quarters as existing contracts expire and product cycles progress.
Read more
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(Photo credit: Apple)
