Apple says memory costs and Siri AI will weigh on holiday quarter profit margins
Following today’s earnings report, Apple held its quarterly earnings call, during which the company discussed the impact of rising memory costs on its profit margins and warned of additional pressure from Siri AI expenses during the holiday quarter. Here are the details. more…
Apple CEO John Ternus highlighted that rising memory costs and the expense of implementing Siri AI will negatively impact holiday quarter profit margins during the company's recent earnings call. Apple's gross margin for Q4 2026 fell to 47.9%, down from 50.1% in the previous quarter, largely due to a 2.2-percentage-point decline in product gross margin, now at 37.2%.
CFO Kevan Parekh stated that tariff refunds provided limited relief, and without factoring in those refunds, gross margins would have declined by approximately one percentage point sequentially. Parekh forecasted company gross margins to range between 45% and 46% for Q1 2027, attributing the continued pressure on margins primarily to higher memory costs and the impact of the ongoing Siri AI rollout.
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