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Apple beats Wall Street forecasts in new boss John Ternus's first results but warns AI is driving up memory costs

Apple beats Wall Street forecasts in new boss John Ternus's first results but warns AI is driving up memory costs

Apple's new CEO John Ternus warned that memory chip costs are rising at an "unprecedented" rate and will squeeze margins further in the December quarter, casting a shadow over an otherwise strong debut. Revenue hit $114.5 billion, up 12%, beating Wall Street's forecast of $113.4 billion, and earnings per share came in at $2.10 against expectations of $1.99. Apple's stock fell 2.6% during the earnings call despite the beat.

China revenue of $17.54 billion and iPad sales of $6.23 billion both missed analyst estimates.

Ternus warned memory costs will KEEP RISING beyond the current quarter, driven by AI data centres hoovering up chips Apple needs for its own devices.

Apple's forthcoming $2,000 foldable iPhone Duo — which drew overnight queues — is not yet in the results, as it launched after the quarter closed.

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