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

The Irish Times · Stephen Nellis · 2026-11-03 07:14 UTC

Early demand for the iPhone 18 ​Pro lineup and higher prices boosted the quarter

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 per cent during a conference call after executives outlined the weaker outlook, but later pared losses to a 2 per cent decline. Early demand for the iPhone 18 Pro lineup and higher prices boosted the quarter.

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

Read the full story at The Irish Times · All coverage of this story