GoKawiilApple forecasts weaker margins as memory costs surge under new CEO Ternus
Apple beat earnings and revenue estimates for its latest quarter, including strong iPhone sales, but CFO Kevan Parekh forecast gross margin of 45%-46% for the holiday quarter, below the 46.3% analyst average. Parekh attributed the shortfall mainly to rising memory chip costs and expenses tied to ramping up Siri AI. Apple shares fell about 3% in extended trading after the announcement.
GoKawiil's interpretation of the reporting above, not reported fact.
The guidance marks what would be Apple's third consecutive quarterly margin decline and its lowest level since late 2023, testing new CEO John Ternus just months into the job. Ternus himself called the memory pricing environment 'unprecedented' and warned costs could keep rising beyond the current quarter, suggesting the squeeze may persist and pressure profitability industry-wide as component shortages ripple through consumer electronics.
- Apple beat earnings and revenue expectations but issued weaker-than-expected margin guidance for the holiday quarter.
- Rising global memory chip costs and Siri AI ramp-up expenses were cited as the main drags on margins.
- Shares dropped roughly 3% after hours as investors reacted to the forecast under new CEO John Ternus.
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See Apple MacBook Air M2 on Amazon → Affiliate link — we may earn a commission on purchases, at no extra cost to you. Product picked by AI based on this article; it is not a tested recommendation.Source: cnbc.com — Kif Leswing, 2026-11-03
Published there as: “Apple's John Ternus faces early test as global memory crisis hurts profits”
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