Question on Apple's guidance of 14-17% Q2 revenue growth vs 9% Expectations
u/BGID_to_the_moon ·
Reddit — r/stocks
· April 30, 2026 at 23:54
· ⬆ 21 pts
· 💬 8 comments
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Apple's up about 3% after hours after issuing unexpectedly high Q2 revenue guidance (14-17% revenue growth vs 9% expected). It also mentioned that margin % would remain consistent at around 48%.
However, at the same time, it mentioned that memory costs are rising. From the earnings transcript:
***"I can tell you that beyond the June quarter, we believe memory costs will drive an increasing impact on our business and we'll continue to evaluate this"***
So with memory costs set to increase significantly enough that it's worth calling out in the transcript, how is Apple able to maintain 48% margin?
They must be raising product prices to maintain margin %. Let me know if I'm thinking about this too simply, but did they guide revenue higher just because they're going to implement unexpected price increases in response to rising costs? They may have guided revenue higher, but they didn't say operating income would increase as well.