Apple stock sinks as global memory crisis hurts profits, giving Ternus his first big test
In John Ternus' first earnings report as CEO, Apple issued a gross margin forecast that disappointed Wall Street.
TL;DR
- Apple's gross margin forecast for the December quarter was below analyst estimates, citing higher memory costs and AI development expenses.
- This forecast represents a potential third consecutive decline in Apple's gross margin.
- The global memory shortage is driving up costs for computer and smartphone manufacturers, with AI server giants significantly increasing demand.
- Apple has raised prices on iPhones, Macs, and iPads to mitigate some of these increased costs.
- Despite supply constraints, Apple reported gaining market share globally for the quarter and the full fiscal year, with record Mac sales.