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Apple forecasts margin drop in holiday quarter as rising memory costs bite

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Apple forecasts margin drop in holiday quarter as rising memory costs bite

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Apple forecasts margin drop in holiday quarter as rising memory costs bite

Apple said it expects gross margin of 45% to 46% in the quarter ending in December, down from 47.9% in the fourth quarter

The results come as Apple experiments with a string of firsts under new CEO ​John Ternus, who took over in September

Reuters SAN FRANCISCO 5 min read Last Updated : Nov 03 2026 | 10:15 AM IST

Apple ​warned on Monday that the cost of memory chips would continue to rise, pressuring gross margin for the crucial holiday quarter, but said it had taken steps to lock in supplies.

Shares, little changed in after-hours trading after fiscal fourth-quarter results beat expectations, fell 4% during a conference call after executives outlined the weaker outlook, but later pared losses to a 2% decline. Early demand for the iPhone 18 Pro lineup and higher prices boosted the quarter.

Apple said it expects gross margin of 45% to 46% in the quarter ending in December, down from 47.9% in the fourth quarter. It forecast services revenue growth of 8% to 9%, below analysts' expectations ‌of 10.7%.

The results come as Apple experiments with a string of firsts under new CEO ​John Ternus, who took over in September. After nearly two decades of ​launching most new iPhones each autumn, Apple this year is spacing them out, with iPhone Pro and Duo models shipping this year and other models expected next year.


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