Apple’s $143B Quarter Sees Shares Drop on AI and Cost Fears
Apple posted record $143 billion revenue and $2.84 EPS, yet shares slid 5% on delayed Siri rollout, cautious AI partnerships, and doubled NAND flash costs. Berkshire Hathaway trimmed its Apple stake for the third straight quarter as the stock tests a key uptrend that could signal tech sector weakness.
1. Q1 Performance
Apple delivered its strongest quarter ever with $143 billion in revenue and $2.84 EPS, driven by a 23% jump in iPhone sales to $85 billion and Services revenue reaching $30 billion, while maintaining a net margin of 29.3%.
2. AI Strategy and Siri Delays
Investors expressed concern over Apple’s measured AI approach, relying on partnerships with Google rather than building in-house infrastructure, and frustration mounted as the Siri AI rollout faced further delays compared with competitors.
3. Rising Component Costs
Under new agreements with Kioxia starting in Q1 2026, Apple faces doubled NAND flash memory costs, raising questions about margin sustainability despite record top-line results.
4. Stake Sale and Technical Outlook
Berkshire Hathaway cut its Apple holdings for the third consecutive quarter, and Apple’s stock is now testing a critical uptrend line whose breach could indicate broader weakness in technology and consumer discretionary sectors.