John Ternus' first Apple test: How rising memory costs could hit profits and margins
India, Sept. 1 -- John Ternus is taking over Apple at a difficult time for the company. Ternus has just replaced Tim Cook as Apple CEO, but he is starting his tenure with a major cost problem: memory chips are becoming more expensive and harder to secure.
Tim Cook gave a clear warning about rising memory costs during his final earnings call as Apple CEO. Cook said Apple is facing a "unique" challenge because data centers are using up a large amount of the available memory supply. This is pushing up prices for Apple and other device makers, according to The Motley Fool.
AI demand is pushing up memory costs
The memory crunch is largely being driven by the huge demand from data centers. The rapid growth of artificial intelligence has incr...
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