How Investors Are Reacting to Apple's 4th-Qtr Earnings

Apple reported $46.9 billion in revenue, aligning with analyst estimates, and sold 45.5 million iPhones in the fiscal fourth quarter. Despite initial stock gains, concerns over lower gross margins and high production costs led to a downturn. The company remains optimistic about the holiday quarter, but faces challenges in China, with sales down 30% year-over-year. Inventory management and competition from local vendors like Huawei are key issues. Margin pressures are attributed to costs in the Chinese market and the relaunch of the Mac line.

What factors might have contributed to the drop in gross margin despite an increase in revenue?

What were the expectations regarding the fiscal first quarter projections, and how did they compare to actual results?

What challenges does Apple face in the Chinese market according to the discussion?

How did the performance of iPhone sales in China impact Apple's overall revenue?

What might be the reasons for the disappointing projections on margins in the fiscal first quarter?