This is a business that lost $(5,833)M in fiscal 2023, earned $778M in fiscal 2024, and then earned $8,539M in fiscal 2025 – a swing that is the textbook shape of a cyclical memory maker, and I own that flatly. The question now sharpens: we have multi‑year take‑or‑pay agreements with floor‑pricing margins we expect to run above any past cycle’s peak, yet the model is still early in revenue terms and we continue to refuse to project prices or long‑term bit‑growth beyond near‑term commentary. So the question remains live and unsettled.
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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.