Apple's Memory Strategy Is a Good Move, Seaport's Goldberg Says

Summary

Jay Goldberg from Seaport Research discusses Apple's earnings and memory strategy. He says Apple's aggressive memory buying is a smart move that will pressure competitors, and the upcoming foldable iPhone could boost margins. Despite memory cost headwinds, Goldberg is bullish on Apple's strategic position.

• Apple's quarterly results beat expectations but gross margin pressure is a key focus.
• Memory prices have tripled over the past year, impacting consumer electronics margins.
• Apple is buying up memory to secure supply, which puts competitors at a disadvantage.
• Apple can recoup extra memory costs through its services division in about nine months.
• Goldberg grades Apple's memory strategy an A or A+.
• The foldable iPhone is expected to be a high-priced, compelling product that drives upgrades.
• Goldberg personally plans to upgrade to the foldable iPhone.
• The foldable iPhone could help ease Apple's margin pressures.