Apple Forecasts Declining Gross Margins Amid Global Memory Shortage and AI Costs
In his first earnings report as CEO, John Ternus faced immediate market pressure after Apple issued a disappointing gross margin forecast for the December quarter. While revenue and iPhone sales exceeded expectations, CFO Kevan Parekh projected margins between 45% and 46%, falling below the 46.3% analyst consensus. The company attributed this contraction to unprecedented increases in memory component pricing and costs associated with ramping up Siri AI capabilities. The margin compression is driven by a global shortage of RAM, as high demand for artificial intelligence servers from companies like Nvidia has tightened supply for consumer electronics manufacturers. To secure necessary components, Apple has significantly increased its purchase obligations by $33 billion. This trend marks a potential third consecutive decline in gross margins for the company, reflecting broader supply chain volatility.
Topics: AI costs earnings report gross margin forecast memory prices stock price movement
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