Apple Stock Fell After a Record iPhone Quarter. Here's the Margin Problem Investors Shouldn't Ignore.

iPhone revenue rose 17.5% to $57.6 billion and beat estimates, but Apple stock was down about 2% after the company guided to a lower gross margin. Apple expects a 45% to 46% gross margin in the holiday quarter, mainly because of higher memory costs, down from roughly 46.9% in the September quarter excluding tariff refunds.