Apple Slides 4% as Ternus Calls Memory Pricing “Unprecedented” Despite a Record $114.5 Billion Quarter
Apple (AAPL) shares fell 4% after guiding December quarter gross margin below expectations at 45-46%, citing 'unprecedented' memory pricing. Revenue rose 12% to $114.5 billion, a record. CEO Ternus noted rising costs from memory and AI upgrades. Micron (MU) reported an 86.8% gross margin, highlighting industry contrasts.
How this was made
The 30-second read
Why it matters
The margin guidance miss triggered a 4% sell‑off, highlighting cost pressures in the supply chain.
Market read
Apple's guidance shapes expectations for the broader tech hardware sector.
What to watch
Strong services revenue and record overall sales could cushion margin concerns.
Background
Apple reported a record $114.5 B September quarter but warned of weaker December margin due to unprecedented memory pricing.
Ticker impact
Apple guided December quarter gross margin to 45%-46%, below expectations, causing a 4% stock decline.
likely downside as investors price in weaker margin outlook
The new margin guidance is material and unexpected, driving the immediate share slide.
Market effects
Potential pressure on other hardware manufacturers facing similar memory cost issues.
U.S. tech sector may see modest pullback in the near term.
Limited to companies with exposure to memory pricing dynamics.
Counterpoint
If Apple can secure lower memory pricing later in the quarter, the dip may be overdone.
Key entities
- CompanyApple
US‑listed consumer‑tech giant (AAPL).
