Apple beats earnings estimates in John Ternus's first report, but rising memory costs threaten margins

Apple reported $114.5 billion in quarterly revenue and $2.10 in earnings per share, beating Wall Street estimates in new CEO John Ternus’s first earnings report. iPhone revenue reached $57.58 billion, also ahead of forecasts. But China revenue missed estimates by about $1.2 billion, iPad sales fell short and higher memory costs are expected to squeeze margins further during the holiday quarter. Apple also raised hardware prices to offset component shortages. The AI data-center buildout is creating a second problem for consumer electronics companies: the same demand driving chip and memory investment is making components more expensive.

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