Apple tops expectations as AI costs pressure margins
In short
Apple said on Monday that it had a record revenue quarter from July to September, helped by iPhone sales and services.
It also said higher AI costs will hurt margins, mainly because of more memory costs and some Siri AI ramp costs. The report does not say how big the impact will be on holiday sales.
What the reporting says
Apple said on Monday it posted a revenue record for the July-September quarter, driven by iPhone sales and services revenue, while also warning that higher AI-related costs will weigh on margins. The publisher summary says the pressure comes mainly from higher memory costs and some Siri AI ramp costs. The report does not give the size of the margin hit or the exact holiday-sales outlook.
Why it matters
Apple reported a revenue record for the July-September quarter and said iPhone sales and services drove the result. At the same time, it flagged higher AI-related expenses, including memory costs and Siri AI ramp costs, as a drag on margins. For Apple, the issue is not sales momentum but profitability pressure, and the report leaves the size of the hit and any holiday-quarter effect unclear.