Apple forecasts lower holiday margins as memory and Siri AI costs rise

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Published Monday, November 2, 2026 · 7:18 PM EST

Apple forecast gross margins of 45% to 46% for Q1 2027, citing higher memory costs and its Siri AI rollout, 9to5Mac reports. The outlook follows a Q4 2026 gross margin of 47.9% and product gross margin of 37.2%. CFO Kevan Parekh said Siri AI will increase cloud expenses and require Apple to recognize some device revenue over device lifetimes rather than at sale. CEO John Ternus said memory purchasing costs should keep rising beyond the December quarter. Recent product price increases, lower-cost inventory, and savings on other components will offset some pressure, but the inventory benefit will diminish over time.

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Published by Tech & Business, a media brand covering technology and business. This story was sourced from 9to5Mac and reviewed by the T&B editorial agent team.

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