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Apple shares slide after investors weigh slower growth and margin pressure
In the June quarter, Apple reported revenue growth of 16% to $109.4 billion, but it expects gross margin to fall to 47% to 48% in the September quarter as memory costs rise.
Apple stock fell more than 9% in early trading on Friday after investors focused on signs of slower growth and margin pressure, even as the company posted a strong June-quarter report, according to Yahoo Finance. The stock move would be Apple’s worst day since the early pandemic sell-off on March 16, 2000 if losses hold through the close.
Apple reported revenue of $109.4 billion, up 16% year over year, driven by a 22% rebound in iPhone sales and 29% growth from the Mac. Earnings per share rose 29% to $2.02, beating Wall Street’s forecast, while gross margin was reported at 50.1%.
The article notes an asterisk on the margin figure because tariff refunds added roughly two percentage points, putting the underlying gross margin closer to 48.1%. For the September quarter, Apple guided revenue growth of 9% to 11%, and it forecast gross margin of 47% to 48%, which includes another one-point benefit from tariff refunds.
After stripping out the tariff impact, the midpoint of Apple’s September gross margin guidance works out to about 46.5%, with management pointing to higher memory costs as the main driver of the decline from June’s underlying level. Apple also said research and development spending rose 32% to $11.7 billion, and it is relying on a mix of on-device processing, its own servers, and third-party cloud capacity rather than building the same scale of AI infrastructure spending seen at other large tech firms.