Apple shares slide as higher memory costs fuel margin concerns
- Apple reported fiscal fourth-quarter earnings on Monday, forecasting gross margin to drop to 45% to 46% in December as rising memory costs pressure profitability.
- Inventory surged 154.3% year-over-year to $14.5 billion in the quarter, driven by aggressive stockpiling of memory components before prices rise further.
- Apple CEO John Ternus called current memory pricing "unprecedented," noting that benefits from lower-cost inventory stockpiles are "decreasing" as costs continue climbing.
- IPad revenue reached $6.2 billion, missing analyst expectations of $6.7 billion and declining 10% year-over-year despite price increases implemented earlier this year.
- COO Sabih Khan and CFO Kevan Parekh emphasized that memory costs will continue rising beyond December, with the company carefully balancing short-term and long-term considerations.
32 Articles
32 Articles
Apple is crashing despite record sales on the stock market, but it is not affected by AI fear at all. The problem is another: the data center boom takes a decisive advantage from the iPhone manufacturer – especially in the Christmas business.
After the announcement of these forecasts, the title lost more than 3% around 23:00 GMT in electronic exchanges after the closing of Wall Street. The group, whose sales had increased by 16% in the spring and then by 12% this summer, is still waiting for its best quarter of history, said financial director Kevan Parekh. This objective "reflects our best estimate given a forced supply", he said. Because its gross margin would fall to 45-46%, compa…
Before the Christmas business, Apple can expand its iPhone business. However, the Group is moving into the most important quarter of the year with exploding storage prices and bottlenecks in a parade model.
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