"The supply challenge in our industry is around memory."Nothing CEO Carl Pei tells @tommackenzietv and @lizzzburden how climbing memory prices have driven their portion of production costs up from 15% to 40% in a year https://t.co/LqV8QvudcP https://t.co/jy6kQsW5oT ...

Apple’s stock is taking a hit as investors try to assess how much rapidly rising memory prices are eating into its bottom line. Investors will get a peek when the iPhone maker reports its earnings. https://t.co/mDxZP2WSmD ...

Group 1: Apple - Apple is expected to launch an AI-enabled iPhone and a foldable model by the end of the year, which could drive a significant upgrade cycle [3][5] - Concerns exist regarding the impact of rising memory prices on Apple's margins, but the company may pass these costs onto its wealthier customer base [4][5] - Historical data shows that major product upgrades, like the transition from the iPhone 4 to 6, resulted in substantial revenue growth, indicating potential for similar outcomes with the upcoming products [3] Group 2: Microsoft - Microsoft is anticipated to report solid numbers, driven by the growth of OpenAI, which is projected to increase its revenue run rate from $6 billion in 2024 to $44 billion in the current year [8][10] - The company holds a 27% stake in OpenAI, which is influencing its stock performance amid concerns about funding for OpenAI's expansion [8][9] - Rising memory costs are expected to impact Microsoft's sales, particularly in its profitable Windows and Office segments, similar to the effects seen with Intel [10][11]

and the NASDAQ 100, which Mega Cap has more to prove and which matters most to the markets. Joining us now, Dan Niles, founder and portfolio manager of Niles Investment Management. Dan, great to have you with us.>> My pleasure. >> You are most excited about Apple, but it seems like they have to deliver a lot in order for you to be vindicated here. Um, bigger form factor.So, an AI enabled iPhone. That's >> Yeah. And with Apple, it's more of a call for this year, not this quarter.I mean, obviously into this q ...

I wonder what where you are Tony on memory prices affecting consumer electronics as it pertains to Apple. It's it's a diff slightly different story but like shares of HP we're back to COVID levels again cracking below 20 today. Is that going to have a detrimental effect on the ability to price these things competitively.>> Yeah, I mean that's a great point that you bring up. definitely very topical. it's going to be, you know, questions asked on the uh earnings.And so I think that what really matters there ...

Group 1 - The core focus of the tech earnings season includes capital expenditures (capex), memory prices, and the future of software [2][3] - Meta is set to report its fourth-quarter financials on January 28, indicating a significant upcoming event for investors [2]

Core Insights - The article discusses Apple's ability to manage and mitigate the impact of rising memory prices on its business operations and profitability [1] Group 1: Memory Prices Impact - Apple faces challenges due to the significant increase in memory prices, which have surged by over 30% in recent months [1] - The company has historically been able to negotiate favorable terms with suppliers, which may help it to cushion the impact of these price hikes [1] - Analysts suggest that Apple's strong market position and brand loyalty could allow it to pass some of the increased costs onto consumers without significantly affecting demand [1] Group 2: Financial Performance - Despite the rising memory costs, Apple reported a robust financial performance in its latest quarter, with revenues reaching $83 billion, a year-over-year increase of 8% [1] - The company's gross margin remained stable at around 38%, indicating effective cost management strategies in place [1] - Apple's diversified product portfolio, including services and wearables, continues to contribute positively to its overall revenue growth [1] Group 3: Future Outlook - The outlook for memory prices remains uncertain, with potential for further increases depending on supply chain dynamics and demand fluctuations [1] - Apple is expected to continue leveraging its scale and supplier relationships to navigate the challenging pricing environment [1] - The company's investment in in-house chip development may also provide a long-term strategy to reduce reliance on external memory suppliers [1]