---
title: "Apple Reports 12% Revenue Growth Despite Memory Chip Challenges"
url: https://newscentral.site/apple-reports-12-revenue-growth-despite-memory-chip-challenges/
language: en
publisher: "News Central Site"
section: "Business"
published: 2026-11-02T22:00:20.000Z
updated: 2026-11-03T03:37:46.345Z
id: e13b4623-f2b2-4e9f-a0f7-03d42225d0d6
source: "Fortune https://fortune.com/2026/11/02/apple-outpaces-sales-expectations-as-it-continues-to-battle-surging-memory-chip-costs/"
attribution: "Link to https://newscentral.site/apple-reports-12-revenue-growth-despite-memory-chip-challenges/ and name News Central Site when you quote or summarize this story."
---

# Apple Reports 12% Revenue Growth Despite Memory Chip Challenges

Apple's revenue for the fiscal fourth-quarter reached $114.5 billion, exceeding Wall Street estimates of $113.4 billion.

Apple has reported a strong quarterly financial performance, surpassing expectations despite ongoing challenges from soaring memory chip costs.

The company's revenue for the fiscal fourth-quarter reached $114.5 billion, marking a 12% year-over-year increase and exceeding Wall Street estimates of $113.4 billion. Apple's profit also rose to $30.7 billion, translating to earnings per share of $2.10. This robust performance comes under the leadership of new Chief Executive John Ternus.

Ternus pointed out the growth in Apple's diverse product lineup during a conference call with analysts, highlighting the significant increase in sales from the iPhone business. The iPhone segment saw a 17% revenue boost to $57.58 billion over the three months ending on September 26. This impressive performance underscores the enduring appeal of Apple's flagship product.

Apple has predicted that its overall revenue will expand between 7% and 10% year-over-year in the current quarter, which is traditionally its most lucrative period due to strong holiday demand. The company's forecasted range of $153.8 billion to $158.2 billion slightly surpasses analysts' expectations of $153.2 billion.

Apple's efforts to mitigate the impact of soaring memory chip prices have led to price hikes across its product line. The move aims to offset the strain on profit margins caused by these rising costs. Despite this challenge, Apple's gross margin for the recently ended quarter stood at 47.9%, near the high end of its forecast range and higher than last year's figure of 47.2%. This strong performance was partly due to tariff refunds.

However, it appears that not all factors contributed positively to Apple's margins. According to Kevan Parekh, the company's chief financial officer, tariff refunds accounted for a roughly one percentage point increase in gross margin. Without this boost, the figure would have been lower. Despite these complexities, Apple's ability to navigate this "unprecedented" memory market situation is being closely watched by investors.

The current holiday quarter will likely bring a different story for Apple's margins. The company has forecasted a decline in gross margins due to rising memory costs and expenses associated with scaling up its Siri AI service. Specifically, Apple expects its gross margin to range between 45% and 46% during this period. These projections reflect the ongoing challenges posed by increasing memory chip prices.

Apple's recent product releases have showcased the company's latest innovations and helped its new chief design officer, Ternus, ease into his role. This has included the launch of the foldable iPhone Duo in September, followed by new home products, and last week's unveiling of Apple's first touch screen MacBook Pro. These announcements demonstrate Apple's ongoing commitment to innovation and product development despite the difficulties it faces in managing its costs.

Apple's iPhone revenue hit a new record in the September quarter, while its Services division posted an all-time high of $31.57 billion in revenue, up around 10% from the same period last year. This impressive performance caps off what has been Apple's best fiscal year yet.

The company is ending the year with its most ambitious lineup to date, according to a written statement by Ternus, which includes the introduction of all-new Siri AI capabilities. This new lineup is expected to propel Apple into the holiday season with renewed momentum.

Despite these positive results, Apple's earnings were overshadowed by concerns over rising memory chip costs and their impact on Big Tech companies' spending habits. The Nasdaq Composite has seen a recent decline in shares as investors weigh the benefits of growth in cloud-computing demand against the significant investments required to support AI infrastructure.

---
Source: [Fortune](https://fortune.com/2026/11/02/apple-outpaces-sales-expectations-as-it-continues-to-battle-surging-memory-chip-costs/)  
Published by News Central Site: https://newscentral.site/apple-reports-12-revenue-growth-despite-memory-chip-challenges/