Apple Slides As Chip Costs Rise

What happened

Updated 1:45pm ET

Apple shares fell Tuesday as investors focused on rising memory-chip costs and a weaker profit outlook despite stronger-than-expected sales.
Apple forecast a holiday-quarter gross profit margin of 45% to 46%, below analysts’ average estimate of 46.3%.
The company said higher memory costs and expenses tied to launching Siri AI would weigh on margins, as AI data centers compete for chip supplies.
CEO John Ternus said earlier product price increases would partly offset higher costs, but the benefit from previously purchased memory would fade.
Ternus warned that chip shortages could continue into 2027 and did not rule out further product price increases.

How the left told it

Left-leaning outlets emphasized Apple’s business strength and relatively restrained AI spending, while noting supply and cost pressures. The Guardian highlighted resilience amid rivals’ AI investment worries; The Verge described Apple benefiting from AI “without busting its budget,” but also reported the share decline and Ternus’s warning of “unprecedented” memory pricing.

How the right told it

Right-leaning outlets emphasized strong sales under Apple’s new CEO alongside chip-cost pressures. Fox Business highlighted record September-quarter results despite price increases, while the New York Post initially said Ternus had “passed an early test.” Its follow-up focused on falling shares as traders feared rising chip costs would hurt growth.