Apple warns of lower Q4 2026 gross margins as memory chip costs surge
Apple said its gross margin for the December 2026 quarter will fall to 45‑46%, down from the 47.9% it posted in the September quarter, as memory chip prices continue to rise. The company also noted that memory cost per iPhone could reach about $245 by 2027, up from roughly $55 today. Apple raised prices on several iPhone models and increased its purchasing commitments by $33 billion, but analysts expect the margin pressure to limit profitability. Shares dropped as much as 4% after the forecast was released.
Why it matters
The lower margin guidance signals reduced profitability for Apple’s holiday quarter, which could affect earnings expectations and stock performance. The company’s shares fell up to 4% on the news, reflecting investor concern over the margin outlook.
Key facts
- 1Apple expects gross margin of 45–46% for the December 2026 quarter. telecomlead.com
- 2Apple reported gross margin of 47.9% for the September quarter. telecomlead.com
- 3Memory cost per iPhone is projected to rise to about $245 in 2027, up from about $55 today. finance.yahoo.com
- 4Memory chip prices have increased 350% over the past year, according to IDC. telecomlead.com
- 5Fiscal fourth‑quarter revenue was $114.48 billion, up 11.7% year over year. telecomlead.com
- 6Earnings per share for the quarter were $2.10. telecomlead.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.