Apple slips on Q1 gross margin, services growth forecast
AAPL•Apple shares fell 4.1% in extended trading after the company forecast first-quarter gross margin of 45% to 46% and services revenue growth of 8% to 9%, despite fourth-quarter revenue and profit beating estimates.
1. First-quarter outlook
Apple said it expects services revenue to grow 8% to 9% in the first quarter and forecast gross margin of 45% to 46%. Its CFO said the outlook includes higher memory chip costs and spending related to Siri AI.
2. Fourth-quarter results
Apple reported revenue of $114.48 billion, above analysts’ average estimate of $113.39 billion, and quarterly profit per share of $2.10, beating estimates of $1.99. Greater China revenue rose to $17.54 billion from $14.49 billion a year earlier, but was below estimates of about $18.58 billion.
