# Apple beats sales targets but chip costs weigh on margins

> Apple's new CEO John Ternus delivered strong quarterly results, but rising memory chip prices are squeezing profits and dimming the outlook.
- Title: Apple beats sales targets but chip costs weigh on margins
- Summary: Apple's new CEO John Ternus delivered strong quarterly results, but rising memory chip prices are squeezing profits and dimming the outlook. Apple beat…
- Keywords: apple, john ternus, earnings, memory chip costs, profit margins, iphone, revenue, beats, sales, targets, chip, costs
- Source: Fortune — https://fortune.com/2026/11/02/apple-outpaces-sales-expectations-as-it-continues-to-battle-surging-memory-chip-costs
- Author: Sebastian Herrera
- Read time: 1 min
- Topics: apple, john ternus, earnings, memory chip costs, profit margins, iphone, revenue
## Apple beats Wall Street targets
Apple posted revenue of one hundred fourteen point five billion dollars in its fiscal fourth quarter, up twelve percent year-over-year and above Wall Street targets of one hundred thirteen point four billion dollars.
## Ternus marks first earnings as CEO
Chief Executive John Ternus delivered his first earnings report since taking over Tim Cook's post in September, highlighting Apple's expanding product lineup including strong iPhone growth of seventeen percent to fifty seven point fifty eight…
## Memory chip surge described as unprecedented
Rising memory chip prices are pressuring Apple's profit margins. Ternus described the situation on Monday's call as an unprecedented situation in the memory market, prompting Apple to raise prices across its product line.

> unprecedented
## Profit margins expected to decline
For the current holiday quarter, Apple expects gross margins to decline, ranging between forty five percent and forty six percent due to rising memory costs and expenses from ramping up its Siri AI service.
## Stock falls on margin concerns
Shares of the four point nine trillion dollar company fell as much as four percent in after hours trading on Monday before recovering to trade down two point seven percent, as investors reacted to the…
## Key takeaway

Apple beat quarterly revenue expectations under new CEO John Ternus but warned that surging memory chip costs will compress profit margins in the holiday quarter.