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AAPLsemiconductorsprofit margins
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Related tickers and likely impact
AAPL
▼ Likely negativeApple Inc.
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Technology Hardware, Storage & Peripherals |
| Market cap | $5.1T |
| Close on 11/02/2026 | 338.32 |
| Change that session | -1.83% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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Apple stock fell about 2% on Tuesday despite a record September quarter, with revenue up 12% to $114.5 billion and iPhone revenue up 17.5% to $57.6 billion, above the $56.5 billion estimate. The main concern is gross margin: the 47.9% figure included roughly 1 percentage point of tariff refunds, and guidance for the December quarter is 45%-46% as higher memory chip prices weigh on costs. The article estimates that each percentage point of margin on $114.5 billion in revenue equals about $1.1 billion of gross profit. iPad revenue fell 10% and wearables revenue fell 8%. Apple trades at about 35 times expected earnings, and the author, who remains bullish, says the December-quarter margin against the 45%-46% forecast will be a key point to watch.
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Apple (AAPL) shares fell 1.15% to $340.68 at 9:40 a.m. ET on November 2, ahead of results due tonight. Apple's prior-quarter gross margin was 50.1%, but excluding a disclosed tariff-refund benefit of about two percentage points brings the comparison to roughly 48.1%, which may give a clearer view of underlying profitability. Apple reported $109.4 billion in revenue in its July 30 release, and Reuters' November 2 preview cites LSEG estimates of $113.39 billion for fiscal fourth-quarter revenue, including $31.56 billion from Services. With rising memory costs in focus, Services would account for roughly 27.8% of revenue under those estimates, making it a key test of Apple's ability to defend profitability. GuruFocus shows a GF Score of 95/100 and a P/E of 39.06, and the article says the report needs to show how underlying margins and the holiday-quarter outlook compare with expectations.
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