I’m more concerned about slowing Services growth than rising memory costs. Memory prices are cyclical. Apple has purchasing power, pricing flexibility and supply-chain advantages to absorb higher costs over time.
Services is different. With roughly 76% gross margins, it remains one of Apple’s most valuable profit engines. If growth slows to 8–9%, it challenges the premium valuation investors assign to Apple's ecosystem.
At $332, I wouldn’t rush to buy the dip. Strong earnings don't automatically make an expensive stock attractive.
I would wait for two signals: stabilizing gross margins and recovering Services growth.
Apple doesn't need another record quarter. It needs to prove that revenue growth can translate into sustainable earnings growth.
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- BartonBecky·11-04 22:5276% gross margin is exactly why I would not underplay Services this quickly. The ecosystem stickiness still gives Apple a long runway even if growth cools for a bitLikeReport