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Apple earnings beat expectations, but rising chip costs worry investors
Euronews.com • • general
Key Points:
- Apple Inc. reported stronger-than-expected Q4 2026 revenue of $114.5 billion, driven by record iPhone sales, with earnings per share of $2.10 beating analyst estimates despite a 3% drop in after-hours shares due to margin concerns.
- iPhone revenue rose 17.5% to $57.6 billion, Mac sales increased nearly 24%, while iPad and wearables revenue declined; Greater China showed a 21% revenue recovery, contributing significantly to growth.
- The company forecasted December quarter revenue growth of 7-10%, its largest ever, but expects gross margins to decline to 45-46% due to rising memory costs and increased AI-related spending.
- Apple is cautiously expanding its AI investments, partnering with Google for Siri upgrades, while keeping capital expenditures relatively low compared to peers like Microsoft and Alphabet who are heavily investing in AI infrastructure.
- Despite strong sales, investors remain concerned about margin pressures once tariff benefits end, with Apple balancing price increases and cost management to mitigate rising component expenses.
