Apple’s Q1 2026 earnings call provided a number of insights. Below are the key takeaways from a memory sector perspective:
Earnings call transcript:
https://t.co/R2cjXyjBym
1. Apple highlighted two major uncertainties in its hardware supply chain: advanced nodes and memory. The former is defined as a "supply constraint," while the latter is viewed as a "cost pressure."
2. Apple’s comments aligns with my pre-earnings analysis (see quotation below): memory pricing has increased significantly, with supply guaranteed.
3. For AI memory investors, Apple’s comments are relatively less relevant. In contrast, non-AI memory investors should pay closer attention, as over the long term, the non-AI memory market is likely to reach supply-demand balance more efficiently than the AI memory market.
4. Had Apple defined memory as a “supply constraint” rather than a “cost pressure” during last week’s call, it likely would have benefited non-AI memory stocks—an outcome some short-term/bullish investors were looking for. Coincidentally, non-AI memory stocks across various markets saw a correction following the earnings call. Yet, few recent discussions have interpreted this pullback through the lens of Apple’s guidance/implications for demand.
5. Given Apple’s strong bargaining power and the fact that iPhone DRAM and NAND flash consumption accounts for around 20–25% of the global smartphone memory market, Apple’s perspective may not be an ideal proxy for broader non-AI/smartphone memory demand. In comparison, outlooks from Qualcomm and MediaTek provide a more useful reference for evaluating medium- to long-term non-AI/smartphone memory demand trends.
6. In my view, valuations of non-AI memory stocks may not yet fully reflect the strong earnings momentum expected this year. Looking further ahead to 2027–2028, AI memory demand should continue to offer better visibility.
Quoted context
These are the quoted author’s words.
A few quick thoughts on Apple/iPhone memory price hikes:
1. The 1Q26 LPDDR price hikes mentioned in the news are pretty close to what I’ve heard. NAND flash increases, however, are a bit lower.
2. iPhone memory pricing is now negotiated quarterly instead of every six months, so expect another hike in 2Q26. Right now, the 2Q26 QoQ increase looks similar to 1Q26.
3. For most non-AI brands, even if you’re willing to pay up, there’s no guarantee you’ll get the supply. The fact that Apple can lock in a deal like this shows just how much leverage they have.
4. Higher memory costs will hit iPhone gross margins. But Apple’s playbook is clear: use the market chaos to their advantage—secure the chips, absorb the costs, and grab more market share. They’ll make it back later on the services side.
5. The cost pressure from memory could be a hot topic for investors and analysts at Apple’s earnings call this week. What Apple says could actually shake up other industries’ stocks more than Apple’s own or its suppliers'.
6. Apple’s current plan for 2H26 new iPhone 18 models is to avoid raising prices as much as possible—at least keep the starting price flat, which is helpful for marketing.
7. Apple has realized that it’s not just memory and T-glass—other components could also run short as the AI server boom continues to squeeze the rest of the supply chain.
https://t.co/yskVn1BDo4
mingchikuo ↗