APPLE stock is falling -4% following its earnings: Apple, $AAPL, delivered a mixed Q3 2026 performance, with strong iPhone and Mac sales offset by weaker results across several other businesses and tightening margins. Total revenue reached $114.5 billion last quarter, beating the $113.5 billion consensus, while EPS came in at $2.10 above expectations of $2.00. iPhone revenue rose to $57.6 billion, exceeding the $56.5 billion estimate, while Mac revenue reached $10.8 billion, above the $9.7 billion consensus. However, iPad revenue of $6.23 billion missed expectations of $6.9 billion, while Wearables, Home and Accessories generated $8.3 billion, below $9.0 billion expected. Services revenue of $31.6 billion was in line with the $31.58 billion consensus. Meanwhile, Greater China revenue reached $17.5 billion, missing the $18.75 billion estimate despite strong YoY growth. Looking ahead, Apple expects holiday-quarter revenue growth of 7%-10%, above Wall Street's 6.1% forecast. However, Apple guided for gross margins of 45%-46% in its December quarter, BELOW the 47% consensus, as higher memory costs and expenses related to the new Siri AI assistant weigh on profitability. Higher memory costs and rising AI-related expenses are putting increasing pressure on Apple's margins.