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

_Published Monday, November 2, 2026 at 7:18 PM EST · Products, AI · Latest · Tier 2 — Notable_

![Apple forecasts lower holiday margins as memory and Siri AI costs rise — Primary](https://9to5mac.com/wp-content/uploads/sites/6/2026/04/Analysts-believe-Apple-taking-a-highly-unusual-step-to-double-Mac-user-base.jpg?quality=82&strip=all&resize=1200,628)

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.

## Sources

- [9to5Mac](https://9to5mac.com/2026/11/02/apple-says-memory-costs-and-siri-ai-will-weigh-on-holiday-quarter-profit-margins/)

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Canonical: https://techandbusiness.org/newswire/NM6AoxOSwXx4YN7LfT31zg
Published: 2026-11-03T00:18:20.960Z
Story chronology: 2026-11-02T23:08:58.000Z
Retrieved: 2026-11-03T02:54:14.022Z
Publisher: Tech & Business (techandbusiness.org)