Apple stock declines after earnings beat but margins disappoint

Apple's share price dropped around 6.5% over two days after the company published its latest earnings report on Monday. The results were actually strong. Revenue for the quarter reached $114.5 billion, above what analysts had expected, and earnings per share also beat forecasts. However, investors were worried about falling profit margins. The main reason for the drop in margins was a sharp rise in memory-chip prices. Growth also slowed to 12% in the September quarter, compared to 16% the previous quarter. Sales in China were lower than analysts had hoped, and the services business grew more slowly than before. Analysts at several major banks have warned that margin pressure could continue until memory prices come down.