Apple earnings call outlines AI monetization path as memory costs pressure margins

Apple reported fourth-quarter results after the close on Monday, November 2, 2026, US Eastern Time: revenue climbed 11.7% year over year to $114.477 billion, above Wall Street expectations of roughly $113.47 billion and above the growth guidance range of 9%-11% the company had given earlier. The quarter set a record for Apple's fiscal fourth quarter, yet the stock fell about 4% in after-hours trading as sales in Greater China came in soft and the holiday-quarter outlook landed below some more optimistic forecasts.

New CEO John Ternus joined the earnings call for the first time. He described China's market performance as showing "strong momentum", said production ramp for the iPhone Duo foldable phone was progressing smoothly, and added that supply constraints would continue to weigh on the current quarter. Apple also laid out its path for monetizing AI.

Memory pricing was a recurring focal point throughout the call. Management called the current memory price trend "unprecedented", said the company had already raised prices on the Mac, iPad, and iPhone to partly offset costs, and noted that manufacturing purchase obligations had risen by $33 billion between the June and September quarters. Gross margin guidance for the December quarter was set at 45% to 46%, down clearly from 47.9% in the September quarter, with management attributing the decline mainly to higher memory costs and Siri.