Apple Posts Record Revenue While Signaling Margin Pressure From Rising Memory Costs

Source Summary

Apple reported its best-ever fiscal year for revenue and earnings per share, with iPhone revenue rising 17.5% to $57.6 billion and Mac revenue climbing 24% to $10.8 billion in the fourth quarter. The company is leveraging AI opportunities while avoiding heavy infrastructure spending that competitors are undertaking. However, Apple warned that rising memory costs would squeeze profit margins in the holiday quarter, causing shares to fall in premarket trading.

Why it matters

Apple's record revenue and selective AI strategy demonstrate how the company is capturing growth from AI demand while managing costs more efficiently than competitors facing heavy infrastructure investments.

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• The Verge ↗