Apple Reports Record Fourth Quarter Revenue Amid Rising Memory Chip Costs
Apple (AAPL) reported its best September quarter ever, with fourth-quarter fiscal 2026 revenue climbing 12% to $114.5 billion. Driven by a 17% increase in iPhone sales and a 24% jump in Mac sales, the company achieved record figures despite supply constraints. However, shares fell nearly 3% pre-market due to concerns regarding rising memory chip costs. Management expects December-quarter revenue growth of 7% to 10%, but gross margins are projected to contract from 47.9% to a midpoint of 45.5%. These margin pressures stem from unprecedented memory pricing and industrywide component shortages. While Apple has raised prices on key hardware, the long-term impact on consumer demand remains uncertain as the company enters the holiday season.
Topics: earnings report memory chip pricing profit margins revenue growth supply chain shortages
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Part of the story Rising Memory Chip Costs Driven by AI Demand Threaten Apple Profit Margins and Consumer Pricing (7 articles)