Apple stock sinks as memory crisis squeezes margins in Ternus' first report

John Ternus' first earnings report as Apple CEO went fine until the forecast, CNBC reports. Apple beat expectations for earnings and revenue, including in its core iPhone unit, and projected sales for the current quarter above estimates. But just before the analyst questions, CFO Kevan Parekh said gross margin for the December holiday quarter would be between 45% and 46%, below the 46.3% average analyst estimate. "This includes primarily the impact of higher memory costs, as well as some costs related to the ramp of Siri AI," he said. The shares sank in response. The global memory crisis now reaches even Apple's famous margins, and it hands the new chief executive his first big test.