Apple slides toward $330 as weak margin outlook overshadows record iPhone sales

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Apple faces pressure after strong earnings

Strong quarterly results reveal uneven business performance

Apple's results for the fourth quarter of fiscal 2026, released on November 2, exceeded consensus forecasts across most key metrics. Revenue increased by 12% year over year to a record $114.5 billion for the September quarter, surpassing expectations of $113.4 billion, while earnings per share reached $2.10 versus forecasts of $1.99 and $1.85 a year earlier.

Net income totaled approximately $30.7 billion, while gross margin reached 47.9%. The iPhone segment demonstrated particularly strong performance, with revenue rising 17% to $57.6 billion, exceeding analysts' expectations of around $56.5 billion. Mac revenue increased by 24% to $10.8 billion, supported by demand for updated laptops, while the services division set a new all-time revenue record of $31.6 billion.

At the same time, the results were mixed: iPad sales declined by approximately 10%, while revenue from the Wearables, Home and Accessories category fell by 8%. Performance in the Chinese market also raised concerns. Despite a 21% increase in Greater China revenue to $17.5 billion, the figure fell short of consensus expectations of around $18.6 billion.

Meanwhile, services revenue growth slowed to approximately 10%, raising concerns about the sustainability of one of Apple's most profitable business segments. Thus, the company demonstrated strong growth in device sales, but investors focused on signs of slowing performance in certain segments and a deteriorating profitability outlook.

Holiday quarter guidance raises profitability concerns

The main negative surprise was management's forecast for the first quarter of fiscal 2027, which includes the crucial holiday season. Apple expects revenue to increase by 7–10% year over year, exceeding market expectations, but gross margin is projected to decline to 45–46%, compared with 47.9% in the previous quarter and analysts' expectations of around 46.5%.

Profit-taking puts key support levels at risk

As I warned in my article Apple faces an earnings test as $343 support holds amid market caution, the earnings release was followed by profit-taking on long positions, which prevented bulls from breaking through resistance around $350 and pushed AAPL down toward support near $330. Although a rebound toward $340–350 still cannot be ruled out, a break below support and a decline toward $310–300 remain entirely possible.

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