Apple forecasts 45–46% December-quarter gross margin on higher memory costs
Overview
Apple forecasts a gross margin of 45% to 46% for the December quarter, below the 46.3% average analyst estimate compiled by LSEG, CFO Kevan Parekh said.
He attributed the outlook primarily to higher memory costs, plus some costs tied to the ramp of Siri AI. Apple also said it expects supply constraints on iPhones and Macs in the holiday quarter, mainly driven by memory.
Shares fell about 3% in extended trading after a nearly 2% drop during regular hours on Monday, following earnings and revenue that beat expectations. CEO John Ternus said memory pricing will keep rising beyond the December quarter.
Written by AI from the articles below · updated Nov 3, 9:15 AM ET
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The articles in this story. Times are ET.
- CNBC · TechnologyNewsApple stock slips as memory costs squeeze margins in Ternus's first earnings report
AIApple forecasts a December-quarter gross margin of 45% to 46%, below the 46.3% analyst estimate, citing higher memory costs and Siri AI ramp costs. Shares fell about 3% in extended trading after a nearly 2% drop during regular hours on Monday. Apple reported better-than-expected earnings and revenue, and CEO John Ternus said memory pricing keeps rising beyond the December quarter.
- CNBC · TechnologyNewsPalantir and Apple shares fall premarket after earnings reports
AIPalantir shares fell about 6% in premarket trading after the company beat third-quarter estimates and reported U.S. commercial revenue topping government revenue for the first time, though analysts pointed to a slowdown in total contract value. Apple shares fell 4.4% after its fourth-quarter revenue beat estimates but iPad sales missed and its margin forecast disappointed investors. Apple cited higher memory costs as the main pressure on profitability.
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