Bernstein Warns Higher Component Costs Threaten Apple's Gross Margins and Cuts Q1 Forecast

Bernstein warned that Apple Inc. faces gross margin pressure from surging component costs across its new device lineup, trimming its fiscal first-quarter EPS forecast to $2.87 from $3.00, roughly 2% below consensus. The brokerage projected iPhone gross margin of 40.4%, missing consensus by 390 basis points, and total gross margin of 46.2%. The warnings follow Apple's launch of higher-priced Pro models and the foldable iPhone Duo. Bernstein noted rising memory expenses account for about 90% of an estimated $168 annual cost increase on the 256GB model, while maintaining an Outperform rating and $370 price target.