Apple forecasts margin drop in holiday quarter as rising memory costs bite
Apple said higher memory-chip costs will squeeze December-quarter profitability, even after record September-quarter revenue and stronger-than-expected iPhone sales.
- 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 has closed fiscal year 2026 with sales of $478,834 million, 15% more than the previous year and the highest figure in its history. They are also the first results with John Ternus at the head of the company. Net profit has risen by 18%, up to 132,175 million, but the ... Continue reading "Apple beats your sales record, but increasingly depends on iPhone"
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