Apple posts $114.5bn revenue despite ‘unprecedented’ memory costs
Expect even higher memory costs for the December quarter, CEO Ternus warns. 5bn revenue despite ‘unprecedented’ memory costs
Apple has reported a revenue of $114.5 billion for its latest fiscal year, marking a 12% increase compared to the previous year, despite facing "unprecedented" memory shortages and a decline in iPad sales. The company's CEO, John Ternus, warned that memory costs are expected to rise further in the December quarter, leading to a dip in Apple shares by over 7.5% in overnight trading.
Despite these challenges, iPhone sales grew by 17.5% to $57 billion, driven by Apple's first foldable smartphone launch. The gross margin for the quarter was 47.9%, influenced by favorable tariff refunds. CEO Ternus emphasized that the company's current memory pricing situation is unprecedented, and the December quarter will benefit from carry-in inventory and lower costs on non-memory components.
CFO Kevan Parekh expects revenue growth of between 7% and 10% for the upcoming quarter, slightly higher than the 6.1% forecast by analysts. The tech giant has also increased its manufacturing purchase commitments by $33 billion from June to September to address supply issues amid the ongoing AI boom.
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