This Was the Most Important Part of Apple's Earnings Release, and It's Not What You Think

Apple (NASDAQ: AAPL) reported blowout 2026 fiscal archetypal 4th (ended Dec. 27) net results past week, with a 23% year-over-year summation successful iPhone sales, which CEO Tim Cook described arsenic "simply staggering." There were each sorts of large updates, including beardown gross margins and a 16% summation successful services revenue.

But the astir important update wasn't a bully one, and that could interaction what happens to Apple banal for the remainder of the year.

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Cook reiterated that request was high, but proviso constraints made it challenging to meet. He noted that pricing for representation is "increasing significantly," and the marketplace took that arsenic a awesome that this could proceed to interaction Apple's margins successful the adjacent term. Cook said Apple was successful "supply pursuit mode" successful presumption of getting what it needs to nutrient its product.

Gross borderline was 48.2% successful the quarter, up a afloat percent constituent from the erstwhile twelvemonth and supra the precocious extremity of guidance. That's been highly affected by the increasing services business, which had a 76.5% gross borderline successful the quarter. However, devices, specifically iPhones, marque up the bulk of the business, and they bring the borderline lower. Apple is guiding for a gross borderline of 48% to 49% successful the 2nd quarter.

While absorption didn't supply full-year guidance, the accusation was that determination whitethorn beryllium immoderate near-term pressure. The beardown study portends bully things to travel for Apple this year. For the agelong term, investors (and imaginable investors) should support monitoring however proviso constraints interaction Apple's margins.

Before you bargain banal successful Apple, see this:

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