Apple shares slide as higher memory costs fuel margin concerns

Apple shares fell about 4% in premarket trading on Tuesday after the tech giant warned that rising memory costs would squeeze gross margins, stoking investor concerns over persistent supply-chain uncertainties and mounting AI expenses.

John Ternus delivered his first earnings report as Apple CEO on Monday, describing the memory-pricing environment as “unprecedented” while expecting costs to rise beyond the quarter ending in December.

The iPhone maker has benefited from using memory purchased at lower prices, but that advantage is expected to diminish over time, leaving more of its purchases exposed to higher prices.