Apple beat estimates for iPhone and Services revenue in Q4, but its stock fell after management said rising memory prices driven by the AI buildout will weigh more on margins. CFO Kevan Parekh expects Q1 to be the best quarter ever, but guided gross margin to 45% to 46%, down from 47.89% in Q4 and 48.16% a year earlier, citing higher memory costs and the ramp-up of Siri AI. CEO John Ternus called memory pricing “unprecedented,” and Apple raised manufacturing purchase obligations by $33 billion from the June to September quarter. Apple also expects supply constraints on Mac and iPad in Q1, while Micron and SK Hynix say the memory shortage could last until 2030.
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Related tickers and likely impact
AAPL
▼ Likely negativeApple Inc.
Relevance: medium
| 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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