Apple Shares Fall on Margin Worries From Rising Memory Costs
· Business · Reuters, Bloomberg
Apple shares dropped 2.4% in premarket trading after the company warned that higher memory-chip prices will compress gross margins in the current quarter. CFO Luca Maestri said memory costs will be a headwind of about 150 basis points, while overall gross margin is expected between 45.5% and 46.5%. The guidance overshadowed a June-quarter profit beat of $1.40 per share on $85.8 billion in revenue. iPhone revenue rose 1% to $39.3 billion, services grew 14% to $24.2 billion, but Greater China sales fell 6.5% to $14.7 billion. Chief Executive Tim Cook said Apple Intelligence features will roll out gradually and are not yet factored into the forecast.
Why it matters
Margin pressure from memory costs signals tighter profitability for the world's most valuable company and may weigh on tech-sector sentiment globally. Indian investors holding Apple directly or through mutual funds face near-term portfolio impact.
Read the original report — Reuters
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