Apple CEO Tim Cook Just Gave Great News to Micron Investors

When Apple (NASDAQ: AAPL) provides quarterly updates, it lone makes consciousness that everyone focuses connected however the latest quality impacts Apple itself. Sometimes, though, the accusation provided by Apple's absorption squad has ramifications for different companies.

That was the lawsuit with the iPhone maker's fiscal twelvemonth 2026 first-quarter net telephone past week. Apple CEO Tim Cook conscionable gave large quality for Micron Technology (NASDAQ: MU) investors.

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If I counted correctly, the connection "memory" was mentioned 16 times during Apple's Q1 net call. And the references weren't astir fond recollections of Apple's history. Both analysts and Apple's absorption discussed the ongoing proviso request imbalance successful representation chips extensively.

Cook said connected the telephone that the robust request for iPhones enactment Apple successful "a proviso pursuit mode" for memory. He added, "We are presently constrained, and astatine this point, it is hard to foretell erstwhile proviso and request volition balance."

How person the proviso constraints impacted Apple financially? Not precise much, astatine slightest truthful far. Cook said that "memory had a minimal impact" connected gross margins successful Q1. However, helium expects a greater interaction successful the 2nd quarter.

Anyone acquainted with the instrumentality of proviso and request knows that prices emergence erstwhile proviso is constricted and request is strong. Unsurprisingly, Cook acknowledged that Apple expects representation prices to summation "significantly" beyond Q2.

To beryllium clear, Cook ne'er mentioned Micron during Apple's Q1 net call. Neither did anyone else. However, Cook's cautionary words astir proviso constraints for representation construe into large quality for Micron.

Samsung remains Apple's superior supplier of representation chips. SK Hynix is different apical root for memory. But Citigroup (NYSE: C) estimates that Micron is supplying astir 30% of DRAM and NAND chips for Apple's iPhone 17. This stock isn't acold down the estimated 37% and 33% for Samsung and SK Hynix, respectively.

The Korea Economic Daily reported past period that Apple has dispatched members of its purchasing squad to hotels adjacent Samsung's and SK Hynix's Korean manufacturing facilities to unafraid semipermanent representation contracts. If that sounds desperate, it is.

However, Cook said thing successful the Q1 net telephone that shouldn't beryllium overlooked. He mentioned that Apple has "different levers that we tin push" to respond to the representation proviso constraints. It doesn't necessitate overmuch speechmaking betwixt the lines to infer that 1 of those levers could beryllium striking a woody that richly rewards Micron.