Apple shares fell about 4% in premarket trading on November 3, extending losses after its fiscal fourth-quarter results. AAPL traded at $325.04, down 3.93% from Monday’s $338.32 close, at 4:07 a.m. Eastern, according to market data.
The holiday-quarter margin outlook weighed on the reaction. On the earnings call, CFO Kevan Parekh forecast a gross margin of 45%–46%, compared with 47.9% in the September quarter. He cited higher memory costs and expenses associated with expanding Siri AI.
The decline followed a strong reported quarter. Apple’s results showed record September-quarter revenue of $114.5 billion, up 12%, and diluted earnings of $2.10 a share, up 14%. Tariff refunds contributed approximately one percentage point to gross margin and five cents to EPS.
Management expects December-quarter revenue to grow 7%–10% year over year, with Services growth of 8%–9%. CEO John Ternus said memory purchase prices were expected to keep rising beyond the December quarter, while the company also faces supply constraints for Mac and iPad.
Our earnings coverage detailed the contrast between stronger iPhone sales and weaker-than-expected Greater China revenue. The holiday period brings a different product mix, including October’s iPhone Duo launch and November Mac deliveries. The latest outlook shifts attention from the quarter already reported to the costs and availability of those new devices.
