Apple forecasts margin drop in holiday quarter as rising memory costs bite
- 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 set all-time revenue record in India last quarter, says CEO John Ternus
Apple just broke its all-time record for revenue in India. Apple CEO John Ternus announced this feat during the company’s latest earnings call. Globally, too, the company posted record annual revenue at $479 billion.
Watch Apple Forecast Tops Estimates, Disappoints Investors
Apple has delivered a forecast for the holiday period that topped Wall Street estimates, even as it failed to impress investors who have bid up the shares in recent months. For more on a mixed first report card under new CEO John Ternus, Bloomberg's Ed Ludlow dissects the numbers.
Apple achieved record sales in the last quarter with iPhones, among other things due to price increases. Nevertheless, the Group expects a slower growth in the future.
With strong iPhone sales, Apple posted earnings that exceeded market expectations. It recorded its highest-ever revenue for the third quarter. However, rising memory prices driven by increasing demand for artificial intelligence (AI) servers are expected to weigh on future profitability. On the 2nd (local time), Apple [announced] its third-quarter (July-September, fiscal year 2022)
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