Why Apple Stock Is Falling: 'Unprecedented' Memory Costs Hit Margins -- WSJ
Dow Jones2026/11/03 10:20By Rebecca Feng
Apple shares are dipping more than 4% premarket after executives projected falling margins in an earnings call yesterday.
While the iPhone maker's sales for the third quarter beat expectations, margins narrowed. During the earnings call, John Ternus, who took over from Tim Cook in September as Apple's new CEO, blamed the memory-chip crunch.
"What we're seeing with memory pricing right now is unprecedented," Ternus said in the earnings call. That was partially offset in the third quarter by the company's stockpile of cheaper components purchased earlier. However, those stocks are dwindling.
For the coming quarters, the company expects even higher memory costs. It has hiked the prices on some products in June and September to help offset them.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires
November 03, 2026 05:20 ET (10:20 GMT)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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