Apple's John Ternus Faces Early Test as Global Memory Crisis Pressures Margins

According to CNBC, Apple CEO John Ternus faced his first earnings-call test as the company forecast a gross margin of 45% to 46% for the December quarter, below the 46.3% analyst estimate. Chief Financial Officer Kevan Parekh attributed the outlook primarily to higher memory costs and expenses tied to the Siri AI ramp. Apple beat earnings and revenue estimates and projected current-period sales above expectations, but its shares fell about 3% in extended trading after dropping almost 2% during Monday's regular session. Ternus said memory prices were unprecedented and were expected to keep rising beyond the December quarter. Apple also expects memory-driven supply constraints for iPhones and Macs during the holiday quarter.