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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.
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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.
·Berlin, Germany
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Total News Sources42
Leaning Left1Leaning Right1Center12Last UpdatedBias Distribution86% Center
Bias Distribution
- 86% of the sources are Center
86% Center
C 86%
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