Apple Shares Fall as Weak Gross Margin and Services Guidance Overshadow Q4 Beat

Apple shares fell between 2% and 3% in extended trading after management issued weaker-than-expected guidance for the December quarter. The company forecast gross margins of 45% to 46%, trailing analyst consensus of 46.9% and down from 47.9% due to surging memory component costs. Services revenue growth is also projected to slow to 8% to 9%, missing the 10.7% expectation amid foreign exchange, regulatory, and gaming headwinds. The cautious outlook overshadowed fiscal fourth-quarter results, in which Apple beat forecasts with $114.48 billion in revenue and earnings per share of $2.10.