Tim Cook Warned of a "100-Year Flood" in Memory Chip Pricing on His Last Earnings Call. Should Apple Investors Be Worried About Margins?

• Tim Cook is stepping down as Apple CEO on Sept. 1. • Rising memory costs will pressure Apple margins in coming quarters. • Apple remains financially strong despite short-term headwinds. Tim Cook will step down as Apple (AAPL) CEO on Sept. 1, with John Ternus succeeding him. Surging memory costs from AI demand are pressuring margins. Q3 gross margin hit 50.1%, but Q4 is guided at 47-48%. Management expects peak cost impact ahead as higher-priced inventory ships. iPhone sales grew 22% YoY but growth is forecast to slow. Apple is securing component supply via Broadcom and other suppliers, giving it leverage to offset some cost increases. While short-term margins will be pressured, Apple’s market position supports long-term stability.