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Apple stock price fell about 4% before the bell on Tuesday, November 3, 2026, despite the company delivering better-than-expected fiscal fourth-quarter earnings. Strong iPhone demand helped Apple beat Wall Street’s revenue and profit forecasts, but weaker-than-expected Greater China revenue and rising memory costs unsettled investors.
The results marked Apple’s first earnings report under new CEO John Ternus, who succeeded Tim Cook on September 1. While the quarter showed continued strength across key product categories, the market reaction highlighted concerns about Apple’s holiday outlook, supply availability and the growing cost pressures linked to artificial intelligence demand.
Apple Stock Price Slides Despite a Powerful Q4 Earnings Beat
Apple reported earnings per share of $2.10 on revenue of $114.48 billion for the quarter. According to Bloomberg consensus estimates cited in the report, analysts had expected earnings of $2 per share and revenue of $113.46 billion.
The company’s performance was a significant improvement from the same period a year earlier, when Apple posted earnings per share of $1.85 and revenue of $102.46 billion. Apple also said fiscal 2026 was its strongest year yet, with full-year revenue reaching a record $479 billion and double-digit earnings-per-share growth.
- iPhone revenue: $57.58 billion, above the $56.48 billion estimate.
- Services revenue: $31.57 billion, almost in line with the $31.58 billion forecast.
- Mac revenue: $10.79 billion, ahead of the $9.69 billion expectation.
- Wearables revenue: $8.3 billion.
- iPad revenue: $6.23 billion.
China Revenue Misses as iPhone Sales Remain Strong
The biggest weakness in the earnings report came from Greater China. Revenue in the region totaled $17.54 billion, below the $18.75 billion analysts had expected. The shortfall added to investor concerns about competition, consumer demand and Apple’s ability to maintain momentum in one of its most important international markets.
Apple executives offered a more positive view, saying sales in Greater China benefited from strong iPhone and Mac performance. The company said Greater China revenue increased 28% year over year, while Mac revenue posted strong double-digit growth. However, the regional miss was enough to overshadow the broader earnings beat.
iPhone sales remained the central bright spot. Revenue of $57.58 billion exceeded expectations, reflecting strong interest in Apple’s latest products, including the iPhone 18 Pro models and the foldable iPhone Duo. Apple also reported a September-quarter record for upgraders worldwide, including customers in the United States and China.
Memory Costs and Supply Constraints Create Fresh Risks
Apple executives warned that rising memory prices could pressure profitability in the coming quarters. Ternus described current memory pricing as “unprecedented,” linking the increase to the global artificial intelligence build-out.
The company expects higher memory costs in the December quarter, although product pricing and existing inventory should provide some relief. Apple CFO Kevan Parekh said gross margin is expected to range between 45% and 46%, partly because of increased memory expenses associated with the company’s Siri AI efforts.
Apple also said Mac and iPad supply could be constrained during the December quarter because demand was higher than expected. COO Sabih Khan said the company could not yet determine when supply and demand for the iPhone Duo would return to balance. Advanced processing node availability was cited as another factor affecting iPhone, Mac and iPad production.
Apple has increased its purchase obligations to secure memory supplies, with the commitment rising by $33 billion between the June and September quarters. The company also received most of the tariff refunds related to duties paid previously, helping offset some cost pressure.
Apple Forecasts Strong Holiday-Quarter Growth
Despite the risks, Apple offered an optimistic forecast for the December quarter. Parekh expects total revenue to grow between 7% and 10% year over year, potentially making it the company’s best quarter ever. Services revenue is expected to rise 8% to 9%, although foreign exchange effects and third-party licensing headwinds may limit growth.
Apple now has more than 2.5 billion active devices worldwide, giving the company a large base for hardware upgrades, subscriptions and digital services. Wearables and iPad installed bases also reached new records, while Apple reported its strongest annual Mac sales to date.
For investors, the latest results present a complicated picture. Strong iPhone demand, record revenue and a confident holiday forecast support the long-term growth story. At the same time, China’s revenue miss, rising component costs and supply constraints could keep pressure on the Apple stock price in the near term.
Frequently Asked Questions
Why did the Apple stock price fall after earnings?
The Apple stock price declined because investors focused on weaker-than-expected Greater China revenue, rising memory costs and potential product supply constraints, despite the company beating earnings estimates.
How much revenue did Apple report in fiscal Q4?
Apple reported fiscal fourth-quarter revenue of $114.48 billion, exceeding the $113.46 billion Wall Street consensus estimate cited by Bloomberg.
What did Apple forecast for the December quarter?
Apple expects total revenue to grow between 7% and 10% year over year. Services revenue is expected to increase between 8% and 9%.
What are Apple’s biggest near-term risks?
The primary risks include weaker demand in Greater China, higher memory and component costs, supply constraints affecting Mac and iPad, and continued uncertainty around advanced processing capacity.
