Apple's earnings report was indeed a mixed bag, as discussed in the preview a couple of days ago: revenue and EPS exceeded expectations, but the China region and services business slowed down. More importantly, management proactively disclosed its outlook during the earnings call – high memory cost pressures will continue to intensify in the coming quarters, and gross margins will further decline. CFO Kevan Parekh explicitly stated in the earnings call that memory costs were the main source of pressure on gross margins this quarter, and the impact of high memory costs will be even more severe next quarter. Apple had previously stockpiled lower-priced components, but this inventory is rapidly depleting, forcing it to purchase memory at higher prices in the future. Apple's gross margin guidance for the December quarter is 45% to 46%, emphasizing that "this primarily includes the impact of higher memory costs, as well as some costs related to the launch of Siri AI." This guidance range represents a significant drop of nearly 2 to 3 percentage points from the actual gross margin of 47.9% this quarter, and is also far below market expectations, directly triggering the accelerated decline in stock price after the earnings call.