Apple stock falls nearly 4% as Ternus guides down Q3'26 margin to 45-46% on rising memory costs - The Tech Portal
Apple shares dropped 4% after guiding Q3'26 gross margin to 45-46%, down from 47.9% in Q2, citing rising memory costs. CEO Ternus expects memory prices to keep rising. iPhone revenue hit a record, but investors focused on production costs. Apple's services business helps absorb some margin pressure. Next margin update comes with December-quarter results.
How this was made
The 30-second read
Why it matters
The key tradable input is the explicit December-quarter gross margin range (45% to 46%), which signals weaker cost absorption and potentially lower earnings power if memory prices keep rising.
Market read
Apple’s guidance provides a near-term margin datapoint and a cost-cycle read-through tied to DRAM pricing, which can drive valuation and positioning decisions ahead of the December-quarter print.
What to watch
The article notes tariff refunds in the prior quarter and that memory bought at older prices is rolling off; the net margin impact could normalize if memory prices stabilize or if services growth outpaces expectations.
Background
This is Apple’s first earnings report under CEO John Ternus, with guidance focused on gross margin compression driven by memory costs and AI ramping expenses.
Ticker impact
Apple guided December-quarter gross margin to 45% to 46%, down from 47.9% in September, citing rising memory costs and AI ramp.
Likely downside pressure as the market reprices Apple’s gross margin trajectory and cost absorption assumptions.
The article reports a specific, company-issued gross margin guide for the next quarter and links it directly to higher memory costs and Siri AI ramp, which is a primary driver of earnings power.
Market effects
Highlights DRAM supply tightness and AI-driven memory demand, which can pressure other hardware OEM gross margin expectations.
US mega-cap tech sentiment likely weakens as Apple’s guidance becomes a read-across for AI supply-chain cost inflation.
Memory pricing dynamics (DRAM) are global, so the guidance reinforces broader semiconductor and hardware cost-cycle narratives.
Counterpoint
Apple’s services mix and prior pricing actions may cushion demand and offset some gross margin pressure versus pure hardware peers.
Key entities
- companyApple
Guided December-quarter gross margin to 45% to 46% due to higher memory costs and Siri AI ramp.
- companySamsung
Reported a ~20% rise in average DRAM selling price in Q3 and expects AI-driven demand to outstrip supply in 2027.
- research_firmTrendForce
Expected conventional DRAM contract prices to rise another 10% to 15% in Q4.
