**Apple Inc. Reports Strong Q3 Earnings While Citing Rising Memory Costs**
Apple Inc. (NASDAQ: AAPL) reported a 16% increase in third-quarter revenue, reaching $109.4 billion, surpassing analyst expectations of $109 billion. IPhone sales rose by 22% to $54.3 billion, contributing significantly to the results, alongside a 29% increase in Mac sales. However, the company’s gross margin dipped slightly to 50.1%, affected by anticipated rises in memory chip prices, prompting concerns about future profitability.
For the upcoming September quarter, Apple has forecasted revenue growth between 9% and 11%, estimating a range of $111.7 billion to $113.7 billion, which falls short of the consensus estimate of $115 billion. CEO Tim Cook indicated that memory prices are expected to continue climbing, which could impact the company’s bottom line and result in a gross margin of 47%-48% for the quarter, similar to the previous year. Following the release, Apple’s stock declined by 7.4%, reflecting investor apprehension over these challenges amid its previous surge past a $5 trillion market cap.
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