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Apple warns rising memory costs and Siri AI will lower holiday margins

Apple told investors during its quarterly earnings call that higher component costs and artificial intelligence expenses will reduce profit margins during the holiday season.

FTMQ Tech, written by our newsroom0 views

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Picture: 9to5Mac

Apple warned investors during its quarterly earnings call on November 2, 2026, that rising memory costs and Siri AI expenses will weigh on profit margins during the holiday quarter. As FTMQ Tech reported earlier, the company expects its gross margin to decrease to between 45 percent and 46 percent in the upcoming holiday period. [1][8]

According to 9to5Mac, Apple has repeatedly stated in recent quarters that rising component costs would put pressure on its profit margins. In the most recent quarter, gross margin reached 50.1 percent, which was an increase from 49.3 percent reported in the second quarter. [1]

Siri AI is a virtual assistant included in devices that support Apple Intelligence. The software operates on iOS 27, iPadOS 27, watchOS 27, macOS 27, and visionOS 27, using voice, gesture control, and a natural language interface to process requests and provide personalized results. [6]

AppleInsider separately reported that Siri handles over 2.5 billion daily requests. Additionally, FourWeekMBA reported that Apple plans to charge users for Siri AI usage beyond daily limits. [2][3]

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In short

  • Apple warned that rising memory costs and Siri AI expenses will lower gross margins in the holiday quarter.
  • Apple expects its holiday quarter gross margin to drop to between 45 percent and 46 percent.
  • Apple gross margin reached 50.1 percent in the quarter ending before the holiday period.
  • Siri receives over 2.5 billion daily requests across supported Apple devices.

Sources

Every paragraph above points to the numbered items it rests on. Read the originals here.

  1. [1]Apple says memory costs and Siri AI will weigh on holiday quarter profit margins9to5Mac, 1d ago (the report this story comes from)
  2. [2]Over 2.5 billion daily Siri requests put Apple's AI overhaul in perspectiveAppleInsider, 1d ago
  3. [3]Apple Will Charge for Siri AI Use Beyond Its Daily LimitsFourWeekMBA, 1d ago
  4. [4]Apple unveils new products: Here’s what’s in store with next-generation Macs and smarter Siri AIGulf Business, 1d ago
  5. [5]You Should Replace Siri On Your Apple Watch - Here's WhyBGR, 3d ago

Background

  1. [6]Siri AI on Wikipedia
  2. [7]Christmas and holiday season on Wikipedia
  3. [8]Apple exceeds sales expectations as AI spending impacts holiday profit margins FTMQ Tech, 1d ago
  4. [9]SK Hynix third quarter profit surges on AI chip demand FTMQ Tech, 7d ago

Our newsroom writes these reports with the help of software, from the 9 sources listed and nothing else, and checks them against those sources. Facts can still be wrong or move on; the originals are the record. Spotted a mistake? Write to daniel@monsterkong.com.

Related from FTMQ Tech

Earlier reports of ours on the same people and subjects.

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