Apple reported its Q4 earnings, revealing significant inventory growth and margin forecasts impacted by higher memory costs.
Executives discussed unprecedented component pricing and supply constraints affecting iPad revenue.
Apple CEO John Turnus called the memory price situation unprecedented. For the December quarter, the company is forecasting a profit margin of 45% to 46%, down from 47,9% in the September quarter, attributing the difference to higher memory component prices. The company's manufacturing material purchase obligations increased by $33 billion from June to the end of the September quarter.
How device prices and sales are affected
To address the situation, Apple raised prices on Macs and iPads in late June and iPhones in September. Chief operating officer Sabih Khan, answering questions, did not rule out further price increases for the devices in the future.
While iPhone and Mac sales were better than expected, iPad sales were affected by supply chain shortages. iPad revenue came in at $6,2 billion, below analysts' estimates of $6,7 billion and down 10% from the same period last year.
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