Wall Street is pencilling in more revenue and less profit from Apple, as soaring memory-chip costs and spending on its Siri AI rollout eat into the iPhone maker's margins.

Goldman Sachs lifted its sales forecasts for fiscal 2027 through 2029 by roughly 1% apiece, while cutting earnings-per-share estimates by about 2% in each of those years, ad-hoc-news reported on 8 November. Bernstein trimmed its fiscal 2027 earnings estimate to $9.78 from $9.90, noting that Apple traded at 35.1 times expected earnings, against an average of 22.7 since 2016. UBS reaffirmed a neutral rating while raising its price target to $340 from $296.

The squeeze follows a record quarter. Apple reported fiscal fourth-quarter revenue of $114.5 billion on 2 November, up 12% from a year earlier, with earnings per share of $2.10 beating the $1.99 consensus. iPhone sales jumped 17% to $57.58 billion and Mac revenue rose 24%. For the December quarter, Apple guided revenue growth of 7% to 10%, but gross margin of 45% to 46%, down from 47.9%, citing unprecedented surges in memory component costs and Siri AI infrastructure spending.

Record high, then a rethink

Shares rebounded to record highs of $349.51 on 4 November after initial post-earnings declines, as investors weighed the holiday revenue guidance against the contracting margins. The stock had fallen about 3.8% at the open on 3 November before recovering.

Supply is another constraint. The foldable iPhone Duo, which launched on 23 October, remains in short supply, and chief executive John Ternus said on 2 November that Apple cannot predict when supply and demand will come into balance. Bloomberg's Mark Gurman expects further hardware price increases in 2027 and beyond — a lever to pass rising costs to buyers, provided they accept them.