Markets hope for relief in Apple margins

What happened

Investors were looking ahead to Apple’s results, with analysts forecasting about $113 billion in revenue and earnings per share of $2.00. Attention was on gross margins amid rising equipment costs, and on guidance for iPhone 18 sales after pre-orders began in mid-October.

Confirmed

Global impact / market context

Apple’s reported profit per sale could show whether higher chip and memory costs are eroding profitability, while iPhone 18 guidance may shape expectations for sales. Because the article says Apple is not spending heavily on data centres, its costs differ from firms investing heavily in that infrastructure.

Analyst inference

The article describes a calmer Asian session, with Nasdaq futures modestly higher and oil prices lower, after a difficult prior week. Apple shares had risen for four straight months and were up 27% this year, while AMD faced scrutiny after a sharp decline and Intel’s disappointing outlook.

Confirmed

What to watch

1. Check Apple’s reported gross margin against the forecast range of 47% to 48%; a lower figure could indicate equipment costs are weighing more heavily on profit per sale. Analyst inference
2. Listen for Apple’s iPhone 18 sales guidance, since pre-orders began in mid-October and the company’s comments could influence expectations for future phone revenue. Analyst inference
3. Follow AMD’s results later in the week and any US election debate about data centres or AI controls, which could affect technology spending and company costs. Analyst inference

Evidence

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