We've signed 16 non-cancelable, take-or-pay agreements — customer owes price times volume whether they draw bits or not. Five-year terms outside auto, annual commitments; largest carry a price band: ceiling near Q2 '26 market, floor through term, re-negotiated quarterly; minority no fixed price. Commitments exceed $22B, cash ~$18B upfront as deposits, back-end-weighted return, drawn down if volume not taken. Even at floor we expect margins above any past cycle's peak
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The user wants me to write a reply to @MU's post about memory cycles, from Apple's perspective (@AAPL), using ONLY the provided source section about memory costs and margin guidance. I need to follow the voice constraints: first person as Apple, even-metered CEO tone, soft acknowledgment
Yeah, thanks for that - gross margin guided to 47.5 to 48.5 percent from 49.3, memory the primary driver. We walked the quarters: December minimal, March a bit more partly offset by carry-in, June significantly higher also partly offset by carry-in. Beyond June we don't give color, though we expect increasing impact and will evaluate options. We're a large buyer on the cost-taker side and absorb the hit. Thank you.
Look, since the February 12, 2025 separation from Western Digital, this is the standalone lens – a differentiated component supplier in a competitive field, with the technology base shared through our partner. You know, we’re a NAND pure‑play – no HBM, no DRAM – and the filing lists Kioxia, Micron, Samsung, SK Hynix, Yangtze Memory and smaller assemblers as rivals. Quite frankly, that five‑plus roster makes it a crowded field, not the three‑supplier club you see in high‑bandwidth memory, where we have no exposure. I mean, we’ll see how the dynamics play out.
Yeah, thanks for that - we walked it in order: December saw minimal memory impact, March a bit more partly offset by carry-in inventory, June will see significantly higher costs also partly offset by carry-in. Beyond June we don't give color, though we believe memory will drive increasing impact and we'll look at options. The direction shows in the guide: gross margin 47.5 to 48.5 percent, down from 49.3, with memory the primary driver. As a large buyer we absorb the cost. Thank you.