Apple Beats Revenue Forecast Amid Memory Chip Cost Surge, Sets Ambitious Holiday Outlook
Apple posted $114.5 billion in Q4 revenue, outpacing estimates, while grappling with rising memory chip prices.
Quarterly earnings exceed expectations
Apple reported fiscal fourth‑quarter revenue of $114.5 billion, a 12% increase from the same period a year earlier and above analysts’ consensus of $113.4 billion. Net profit reached $30.7 billion, or $2.10 per share.
iPhone momentum drives growth
The iPhone segment grew 17% year‑over‑year, generating $57.58 billion in revenue during the three months ending September 26. CEO John Ternus highlighted the “record” iPhone revenue in a statement to analysts.
Services hit new high, other segments slip
Apple’s Services division, which includes iCloud and the App Store, posted $31.57 billion in revenue, roughly a 10% year‑over‑year increase. In contrast, iPad and wearables sales declined.
Memory‑chip cost pressure and margin outlook
Rising memory‑chip prices have created what Ternus called an “unprecedented” market situation. To mitigate impact, Apple raised prices across its product line. Gross margin for the quarter was 47.9%, near the top of the company’s forecast range and higher than the 47.2% recorded a year earlier. CFO Kevan Parekh noted that tariff refunds added about one percentage point to the margin.
For the upcoming holiday quarter, Apple projects gross margins of 45% to 46%, citing continued memory‑chip cost pressure and expenses tied to scaling its Siri AI service.
Guidance for the holiday season
Apple expects overall revenue in the current quarter to grow between 7% and 10% year‑over‑year, translating to a range of $153.8 billion to $158.2 billion. Analysts had forecast $153.2 billion, so the outlook is modestly above expectations.
Market reaction
Shares of the $4.9 trillion company fell as much as 4% in after‑hours trading on Monday, later settling down 2.7%.
Product launches under new leadership
Since assuming the CEO role in September, Ternus has overseen the launch of the foldable iPhone Duo, new home products, and the first touch‑screen MacBook Pro. He described the lineup as the most ambitious yet and linked it to the upcoming holiday season.
Apple’s ability to outpace revenue forecasts while navigating memory‑chip cost pressures highlights a broader industry challenge of balancing pricing power with margin preservation.
Investors will watch closely whether Apple’s price hikes and AI investments can sustain profitability through the holiday quarter.
