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Apple faces margin pressure from memory supplier oligopoly amid its biggest iPhone launch yet.

Analyst Insights
09 Sep 2026
24/7 Wall Street
View Source
Neutral
Apple faces margin pressure from memory supplier oligopoly amid its biggest iPhone launch yet.

As Apple prepares to launch its most ambitious iPhone, analyst Paul Meeks warns that a supplier oligopoly in memory chips—dominated by Micron, SK Hynix, and Samsung—is driving up costs and squeezing Apple's profit margins. Despite strong recent financial results, Apple executives acknowledge rising memory prices and supply constraints will impact margins and product availability. The memory market's tight control and high prices, fueled by AI demand, are expected to persist, posing a challenge for Apple’s profitability in upcoming quarters. Investors should watch Apple’s margin updates closely following the launch.

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