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BusinessQuiet 11d · day 11

Apple guides December quarter revenue up 7–10%, warns of margin pressure

CFO Parekh cites supply constraints and rising memory costs as headwinds despite record revenue expectations.

newest coverage 11d agosummary written 10d ago2 pieces Newswires

What to know

  • Apple expects December quarter revenue of $153.8–$158.1 billion (7–10% growth), marking its best revenue quarter ever, but faces persistent supply constraints on iPhone, Mac, and iPad.
  • Gross margin is forecast to fall to 45–46% from 47.9%, primarily due to higher memory costs and Siri AI ramp-up expenses that will persist through year-end.
  • Services growth is slowing to 8–9% from 9.8%, dragged by foreign exchange headwinds and third-party licensing impacts.
  • Operating expenses continue climbing sharply, with R&D up 32% year-over-year, signaling sustained investment in AI and other initiatives.

Kevan Parekh Apple CFOTim CookTim Cook Apple CEOApple Technology company

Apple guides December quarter revenue up 7–10%, warns of margin pressure
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How it unfolded 1 development · click the chart to see its coverage articles

Peak 1 piece in 3h at Nov 2, 4 PM; 2 pieces over 11 days (2 articles) Nov 2, 4 PM — 1 piece · 1 article — Newswires 1Nov 2, 7 PM — 1 piece · 1 article — Newswires 1Nov 2, 10 PM — quietNov 3, 1 AM — quietNov 3, 4 AM — quietNov 3, 7 AM — quietNov 3, 10 AM — quietNov 3, 1 PM — quietNov 3, 4 PM — quietNov 3, 7 PM — quietNov 3, 10 PM — quietNov 4, 1 AM — quietNov 4, 4 AM — quietNov 4, 7 AM — quietNov 4, 10 AM — quietNov 4, 1 PM — quietNov 4, 4 PM — quietNov 4, 7 PM — quietNov 4, 10 PM — quietNov 5, 1 AM — quietNov 5, 4 AM — quietNov 5, 7 AM — quietNov 5, 10 AM — quietNov 5, 1 PM — quietNov 5, 4 PM — quietNov 5, 7 PM — quietNov 5, 10 PM — quietNov 6, 1 AM — quietNov 6, 4 AM — quietNov 6, 7 AM — quietNov 6, 10 AM — quietNov 6, 1 PM — quietNov 6, 4 PM — quietNov 6, 7 PM — quietNov 6, 10 PM — quietNov 7, 1 AM — quietNov 7, 4 AM — quietNov 7, 7 AM — quietNov 7, 10 AM — quietNov 7, 1 PM — quietNov 7, 4 PM — quietNov 7, 7 PM — quietNov 7, 10 PM — quietNov 8, 1 AM — quietNov 8, 4 AM — quietNov 8, 7 AM — quietNov 8, 10 AM — quietNov 8, 1 PM — quietNov 8, 4 PM — quietNov 8, 7 PM — quietNov 8, 10 PM — quietNov 9, 1 AM — quietNov 9, 4 AM — quietNov 9, 7 AM — quietNov 9, 10 AM — quietNov 9, 1 PM — quietNov 9, 4 PM — quietNov 9, 7 PM — quietNov 9, 10 PM — quietNov 10, 1 AM — quietNov 10, 4 AM — quietNov 10, 7 AM — quietNov 10, 10 AM — quietNov 10, 1 PM — quietNov 10, 4 PM — quietNov 10, 7 PM — quietNov 10, 10 PM — quietNov 11, 1 AM — quietNov 11, 4 AM — quietNov 11, 7 AM — quietNov 11, 10 AM — quietNov 11, 1 PM — quietNov 11, 4 PM — quietNov 11, 7 PM — quietNov 11, 10 PM — quietYesterday, 1 AM — quietYesterday, 4 AM — quietYesterday, 7 AM — quietYesterday, 10 AM — quietYesterday, 1 PM — quietYesterday, 4 PM — quietYesterday, 7 PM — quietYesterday, 10 PM — quietToday, 1 AM — quietToday, 4 AM — quietToday, 7 AM — quietToday, 10 AM — quietToday, 1 PM — quietToday, 4 PM — quietToday, 7 PM — quiet 1
Nov 3Nov 4Nov 5Nov 6Nov 7Nov 8Nov 9Nov 10Nov 11yesterdaynow · 9:11 PM ET
  1. 1

    Apple attributes margin decline to memory costs and AI infrastructure investment

    Parekh attributed the lower margin guidance to higher memory costs persisting through at least year-end and costs from ramping Siri AI across five new languages in iOS 27.2. Operating expenses rose 21% in the September quarter to $19.2 billion, with R&D climbing 32% to $11.7 billion. Apple has received most of its tariff refunds, which had boosted prior-quarter margins by roughly one percentage point.

    “the range reflects constrained supply, and that Apple expects it to be the best quarter for revenue in its history…”
    — Kevan Parekh, Apple CFO · source
    1. 2 outlets Apple Guides December Quarter Revenue Up 7% to 10% as Margin Falls to 45%

      first by iThinkDifferent, 11d ago · also Seeking Alpha

      1 more headline
  2. background

    Apple lowers Services growth outlook to 8–9% as currency headwinds mount — Apple expects Services revenue growth of 8–9% in the December quarter, slower than the 9.8% growth in the September quarter. Third-party licensing and foreign exchange are cited as sequential headwinds. The guidance projects Services revenue of $32.4–$32.7 billion, slightly above the September quarter record of $31.6 billion.

  3. background

    Apple guides December quarter revenue growth of 7–10% amid supply and margin pressures — Apple CFO Kevan Parekh announced December quarter guidance projecting revenue of $153.8–$158.1 billion (7–10% growth), which would mark the company's best revenue quarter ever. Gross margin is expected to decline to 45–46%, down from 47.9% in the September quarter, due to higher memory costs and Siri AI ramp-up expenses. Supply constraints on iPhone, Mac, and iPad are expected to persist.