Micron posts record profit as memory shortage drives Apple device price hikes

Micron Technology reported a strong third‑quarter fiscal result, posting $41.5 billion in revenue, earnings per share of $2.51 and a gross margin of about 85 percent, far exceeding Wall Street expectations. The company raised its fourth‑quarter outlook to roughly $50 billion of revenue and $31 earnings per share, well above analyst forecasts. It highlighted 16 strategic multi‑year contracts with major customers and warned that a deficit of computer memory, especially high‑bandwidth memory needed for artificial‑intelligence workloads, could persist through 2028.

The ongoing shortage, which Micron attributes partly to aggressive purchasing practices by large customers, has forced Apple to raise prices on several product lines, including MacBooks and iPads, as CEO Tim Cook cited tight RAM supply and rising component costs. Analysts note that limited supplier concentration—SK Hynix, Samsung and Micron—allows memory price increases, which in turn lift the cost of smartphones, PCs, gaming consoles and other consumer electronics. Micron’s shares jumped about 15 percent after the earnings release.