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Apple forecasts margin drop in holiday quarter as rising memory costs bite
Apple said higher memory-chip costs and Siri AI spending will push gross margin to 45% to 46% in the holiday quarter.
- On Monday, Apple reported record September-quarter revenue of $114.5 billion, up 12% year-over-year and surpassing Wall Street estimates of $113.46 billion.
- Apple CEO John Ternus, who took over from Tim Cook on September 1, oversaw the quarter while launching the iPhone Duo and first touchscreen MacBook Pro.
- Net profit reached $30.7 billion, with diluted EPS of $2.10 per share. Operating cash flow totaled $28 billion, which the company returned entirely to shareholders.
- Tariff refunds provided a one-time boost, with Apple CFO Kevan Parekh noting they contributed about 1 percentage point to gross margin and $0.05 to diluted EPS.
- Investors are monitoring December-quarter guidance as the company enters the holiday season with the iPhone 18 Pro, Apple HomeView, and touchscreen MacBook Pro, while non-Pro models arrive early next year.
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Apple Stock Falls as Manufacturing Commitments Jump $33 Billion Amid Margin Pressure
Apple (NASDAQ: AAPL) shares fell 4.46% to $323.23 in premarket trading at 08:21 a.m. ET Tuesday, following an earnings call that disclosed a $33 billion increase in manufacturing purchase obligations and a weaker gross margin forecast for the holiday quarter.Visit Website
Coverage Details
Total News Sources247
Leaning Left34Leaning Right31Center45Last UpdatedBias Distribution41% Center
Bias Distribution
- 41% of the sources are Center
41% Center
L 31%
C 41%
R 28%
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