Memory price increases, favorable for Samsung, put pressure on Apple's margin

Apple reported revenue of US$ 114.5 billion (about R$ 622.7 billion) in the fourth fiscal quarter of 2026, which ended on September 26. This figure represents a 12% growth compared to the same period last year, setting a new quarterly record. Net income also increased, reaching US$ 30.7 billion (R$ 167 billion), corresponding to an annual increase of approximately 12%.

The financial data was made public this Monday (2) and exceeded Wall Street forecasts. The success was mainly driven by sales of the iPhone 18 Pro, while the services division also recorded its highest revenue ever.

Diluted earnings per share were US$ 2.10 (approximately R$ 11.42), marking a 14% advance over the fourth fiscal quarter of 2025. The gross margin stood at 47.9%, positively benefited by a tariff adjustment of approximately one percentage point.

This was the first quarterly report under the management of John Ternus, who took over as CEO in September, succeeding Tim Cook. The smartphone division was the highlight of the balance sheet, with iPhone revenue reaching US$ 57.6 billion (approximately R$ 313.2 billion), a 17% growth compared to the third quarter of 2025.

This result surpassed analyst estimates, which predicted around US$ 56.5 billion (R$ 307.4 billion). Strong demand for the iPhone 18 Pro models contributed to sales, despite the company's new approach to distributing device launches throughout the year.

The services division also showed remarkable performance, with revenue of US$ 31.6 billion (R$ 171.7 billion), an increase of about 10% compared to last year and a new historical record. This segment includes activities such as Apple Music, iCloud, and the App Store.

Additionally, the Mac computer division generated US$ 10.8 billion (R$ 58.7 billion), representing a growth of approximately 24% compared to the same period last year, also exceeding market projections.

Conversely, two product categories registered a decline. The results indicate that Apple's growth remains primarily concentrated in the iPhone and services, although computers have shown considerable expansion.

Despite the positive performance, the company faces the challenge of increasing costs for components used in manufacturing its devices, particularly memory chips. This cost increase is attributed to higher demand for such components, which is also stimulated by the expansion of artificial intelligence (AI) infrastructure.

According to John Ternus, higher prices for certain products helped partially mitigate this pressure on margins. Apple raised the prices of specific models in the iPhone 17 line by US$ 100 and also adjusted the prices of some MacBook computers.

The gross margin of 47.9% was higher than the 47.5% projected by analysts consulted by LSEG. Another aspect highlighted by the CEO was the functioning of the revamped AI Siri, which currently processes about 2.5 billion requests daily.

Apple also commented on the launch of the iPhone Duo, the company's first foldable smartphone, which occurred in October. The device sold out quickly online and caused queues in stores, but demand remains above supply capacity. In an interview with Reuters, Ternus confirmed that only a small fraction of units were returned due to screen issues, and the company is replacing these devices. The executive admitted that there is still no forecast to match supply and demand.

Since the iPhone Duo was launched on October 23, its sales were not included in the balance sheet released this Monday; the results of this device should appear in the next fiscal quarter.

The fourth quarter performance allowed the company to conclude its best fiscal year in terms of revenue. In 2026 cumulatively, Apple generated US$ 28 billion (R$ 152.3 billion) in operating cash flow during the fourth quarter, an amount returned to shareholders via dividends and stock buybacks. The board of directors also announced a dividend of US$ 0.27 per share (approximately R$ 1.47), scheduled for payment on November 16.

Despite the financial surplus, Apple's shares suffered a slight drop of about 1% in after-hours trading, amid sector volatility.

Samsung reported a record operating profit in the third quarter of 2026, a result directly linked to the high demand for semiconductors used in artificial intelligence (AI) systems. In the period between July and September, the South Korean corporation's operating result reached 107.4 trillion won, equivalent to about US$ 80 billion or R$ 432 billion, representing a significant increase of 783.1% compared to the same quarter last year.

Additionally, the company achieved a historic revenue of 195.25 trillion won, corresponding to approximately US$ 145.5 billion or R$ 786 billion, marking an annual growth of 126.9%. Net profit also grew significantly, advancing 514.6% to 75.13 trillion won, or about US$ 56.2 billion (R$ 303 billion).

These results were disclosed on Thursday (29) and reflect the progress in investments in AI infrastructure, which has expanded the need for components capable of processing and storing large volumes of data. With this performance, Samsung consolidated itself as the first technology company to surpass the mark of 100 trillion won in operating profit in a single quarter.

Despite these notable figures, net profit fell short of projections made by analysts consulted by Yonhap Infomax, who predicted an average of 87.01 trillion won (approximately US$ 64.9 billion or R$ 350 billion).

The semiconductor sector's performance contrasted with the results presented by other areas of Samsung. The Device and Experience (DX) division, which includes various device businesses, recorded an operating loss of 800 billion won, corresponding to approximately US$ 600 million (R$ 3.2 billion).

Regarding mobile phone and network segments, combined revenue was 37.7 trillion won (about US$ 28.3 billion or R$ 153 billion), but there was an operating loss of 600 billion won (US$ 450 million or R$ 2.4 billion). Although sales were stimulated by the launch of foldable devices and other top models, costs ultimately impacted profitability.

Businesses related to televisions and home appliances also faced challenges. Together, they generated a revenue of 13.9 trillion won (US$ 10.4 billion or R$ 56 billion) and incurred an operating loss of 200 billion won (US$ 150 million or R$ 810 million), due to increased costs and a drop in television revenue after major sporting events.

Samsung Display, responsible for screen businesses, achieved a revenue of 8 trillion won (US$ 6 billion or R$ 32.4 billion) and an operating profit of 1.1 trillion won (US$ 825 million or R$ 4.5 billion).

Meanwhile, Harman, operating in the audio and automotive technology sectors, showed improvement in its results, benefiting from both increased sales and tariff refunds made in the United States. This division recorded a revenue of 4.3 trillion won (about US$ 3.2 billion or R$ 17.3 billion) and an operating profit of 600 billion won (US$ 450 million or R$ 2.4 billion).

The company also increased its investments to meet the growing demand for semiconductors. Capital expenditures totaled 29 trillion won, representing approximately US$ 21.8 billion (R$ 118 billion) in the third quarter, an increase of 12.2 trillion won (US$ 9.2 billion or R$ 49.7 billion) compared to the immediately preceding quarter.

Of this amount, 27.2 trillion won (US$ 20.4 billion or R$ 110 billion) was directed to the semiconductor division. Accumulated between January and September, total investment reached 56.9 trillion won (US$ 42.7 billion or R$ 230 billion), an annual increase of 24.7 trillion won (US$ 18.5 billion or R$ 100 billion).

For the remainder of 2026, Samsung projects capital expenditures of around 84.4 trillion won, equivalent to approximately US$ 63.3 billion (R$ 342 billion). Of this total, 76.8 trillion won (US$ 57.6 billion or R$ 311 billion) will be allocated to the semiconductor division, and 3.9 trillion won (US$ 2.9 billion or R$ 15.8 billion) will be designated for Samsung Display.

These resources aim to sustain the expansion of production capacity and prepare new facilities to meet the demand for chips aimed at AI and high-performance computing. The company's strategy focuses on maintaining focus on higher value-added components, such as HBM memories, server DRAM, and SSD storage units, thereby capitalizing on the growth of AI investments and reinforcing its position in the global semiconductor market.

Samsung is expected to decrease the manufacturing of its Galaxy A line phones by approximately 20% during the fourth quarter of 2026, compared to the initially planned volume. This decision is motivated by the sharp increase in memory chip values, which has raised production costs for both entry-level and mid-range smartphones.

According to reports from the South Korean press, Samsung's suppliers have already been notified about this reduction in component orders. It is estimated that this cut could result in about ten million fewer devices being produced throughout 2026. Furthermore, industry sources indicate that production of the same line in 2027 is also expected to fall by about 10%.

Annually, the company distributes between 230 and 240 million cell phones, according to GSMArena data, with approximately 70% of this total belonging to the A line, which includes models such as Galaxy A17, A37, and A57. The primary cause for this production adjustment remains the increasing cost of components, particularly RAM and storage chips.

Industry information reveals that memory modules can now account for more than half of the manufacturing cost of certain basic phones, which reduces the profit margin obtained from more affordable devices. Other elements, such as PCBs and MLCCs, are also under greater demand pressure due to the expansion of infrastructure focused on Artificial Intelligence. Industry sources also suggest that future cheaper versions may have adjustments to screens and cameras to absorb rising costs, in addition to being launched at higher prices.

Although Samsung manufactures its own memory, the company is reportedly prioritizing components and production capacity allocated to higher-value devices, such as the Galaxy S and Galaxy Z series models, which provide superior profit margins.

The impact of rising costs is already visible in the prices charged by Samsung in Brazil. Models from the Galaxy A line have seen price adjustments in recent months, reaching double their initial price. One example is the Galaxy A07 4G 256, whose value rose from R$ 1,099 in September 2025 to R$ 2,299 at the official Samsung store. Other models, including versions of the Galaxy A07, A17, A27, A37, and A57, have also experienced increases reaching 50% of the original price. Even the premium series has been affected, with the Galaxy S26 family showing increases of up to R$ 1,300.

Despite the adjustments, the mid-range category maintains its position as the brand's sales leader in Brazil, ranking among the top three best-selling devices in the country. This pressure on lower-cost models accompanies a change in consumer behavior. In February, the consultancy Gartner predicted that, with the increase in memory and consequently phone prices, consumers would tend to make fewer device upgrades.

Analyses by other consulting firms, such as Omdia and Counterpoint Research, also show a growth in the market share of higher-priced smartphones and present worrying forecasts for the cheapest models. According to these consultancies, the current scenario may benefit older generation flagship smartphones when sold on promotion or in the used market. The crisis has also influenced recent launches and demand for lines such as the iPhone 18 Pro.