Apple calls memory prices "unprecedented" and guides its margin down for the holidays
Apple reported record September-quarter revenue of $114.5 billion on Monday, up 12%, in the first results under chief executive John Ternus. Then it said the December quarter's will fall to 45% to 46%, from 47.9%, mostly because of memory. Ternus called memory pricing "unprecedented" and said costs will keep rising after December; inventory has climbed 154% in a year to $14.54 billion, and manufacturing rose by $33 billion in a quarter as Apple locked in supply. Excluding tariff refunds, both its margins fell about a point from the previous quarter on memory alone.
Two AI costs appear in the . Running Siri's new AI features raises Apple's cloud bill, and Apple will defer part of the revenue from devices that have them, recognizing it over the device's life. Chief financial officer Kevan Parekh also pointed to "opportunities across third-party apps and partnerships" in AI without saying what they are. The shares fell before Tuesday's open. SourcesABBB
Sources
- AApple reports fourth quarter results (Business Wire, not opened)businesswire.com
- BApple's inventory surges 154% as memory chip costs climb (TechCrunch)techcrunch.com
- BApple says memory costs and Siri AI will weigh on holiday quarter profit margins (9to5Mac)9to5mac.com
- BApple may try to increase revenue by doing something with third-party AI apps (TechCrunch)techcrunch.com
This story ran in the Morning Brief of November 3rd 2026.