While the current worldwide memory constraints had minimal impact on Apple’s Q1 2026, the company expects Q2 to be a very different story. Here are the details.
Apple doesn’t elaborate on (or rule out) price increases
One of the most discussed issues in today’s fiscal Q1 2026 earnings call was how much the current memory shortage impacted Apple’s quarter, and how it will affect the business going forward.
While Apple CEO Tim Cook and CFO Kevan Parekh steered clear of giving away any specifics, they did confirm that they expect memory constraints to weigh on the company’s margins in fiscal Q2 2026, as it grapples with the challenge of meeting customer demand, which is also increasing.
Additionally, Cook said Apple will “look at a range of options” to address memory price increases.
When asked (more than once) if any of these levers included the possibility of increasing prices, Cook answered:
“Yeah, I wouldn’t want to speculate on that one.”
And
“I mean there are there are different uh levers that that we can push and and who knows how successful they’ll be, but there’s just a range of options.”
At the top of the conference call, Parekh said that Apple expected a 48% to 49% margin for fiscal Q2 2026.
When asked about how the memory prices might play into that, Cook confirmed that this was factored in when Apple provided this guidance, while Parekh touched on how Apple might offset this pressure:
There’s gonna be a few puts and takes. You know, we do expect to see favorable mix into services, as you know, when we move from Q1 to Q2. That tends to be the case, and that’s partly offset by a seasonal loss of leverage. So there’ll be puts and takes, but you know, again, we feel pretty good about the guide of 48 to 49 percent, which is similar to the range we reported in December.
During fiscal Q1 2026, Apple posted 40.7% gross margin for its products and 76.5% for its services, for a 48% gross margin overall.
Do you think Apple will increase Mac and iPhone prices this year? Let us know in the comments.
Accessory deals on Amazon
- AirPods Pro 3
- Beats USB-C to USB-C Woven Short Cable
- Wireless CarPlay adapter
- Logitech MX Master 4
- Apple AirTag 4 Pack
FTC: We use income earning auto affiliate links. More.
Comments