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Apple's new Chief Executive Officer, John Ternus, faces his first major investor test as rising memory-chip costs threaten profit growth, putting the
company's product strategy, artificial intelligence (AI) ambitions and holiday-quarter outlook under scrutiny.
Ternus, who succeeded Tim Cook in September, will host his first earnings call on November 2. Investors are looking for signs that Apple's latest product launches can sustain growth even as increasing component costs put pressure on profitability.
Analysts expect Apple's July-September revenue to reach $113.39 billion, an increase of nearly 11 per cent from a year earlier, according to LSEG estimates cited by Reuters. Net profit is forecast to rise around 6 per cent to $29.04 billion, which would mark the slowest growth in six quarters if the projections materialise.
The iPhone business remains central to the company's performance, with revenue expected to increase 15 per cent to $56.54 billion. However, the reporting period includes only nine days of sales of the iPhone 18 Pro models.
Attention is also shifting to Apple's first foldable smartphone, the iPhone Duo, which began shipping on October 23 at a starting price of $1,999 in the United States. Initial online orders sold out within minutes. However, reports of cracks and lines along the inner display's fold have raised concerns. Apple acknowledged an issue affecting a small number of devices and advised affected customers to contact AppleCare for replacements.
Beyond hardware, investors are seeking clarity on Apple's revamped Siri and its broader AI strategy. They are also assessing whether the company can generate additional revenue by distributing third-party AI agents through its App Store.
Rising memory costs are adding pressure as demand from AI data centres intensifies competition for semiconductor components. Meanwhile, services revenue is forecast to grow nearly 10 per cent to $31.56 billion, marking its slowest expansion in more than three years.
For Ternus, the challenge is to protect profit margins, sustain iPhone demand and demonstrate that Apple can remain competitive as AI reshapes the technology industry.
Ternus, who succeeded Tim Cook in September, will host his first earnings call on November 2. Investors are looking for signs that Apple's latest product launches can sustain growth even as increasing component costs put pressure on profitability.
Analysts expect Apple's July-September revenue to reach $113.39 billion, an increase of nearly 11 per cent from a year earlier, according to LSEG estimates cited by Reuters. Net profit is forecast to rise around 6 per cent to $29.04 billion, which would mark the slowest growth in six quarters if the projections materialise.
The iPhone business remains central to the company's performance, with revenue expected to increase 15 per cent to $56.54 billion. However, the reporting period includes only nine days of sales of the iPhone 18 Pro models.
Attention is also shifting to Apple's first foldable smartphone, the iPhone Duo, which began shipping on October 23 at a starting price of $1,999 in the United States. Initial online orders sold out within minutes. However, reports of cracks and lines along the inner display's fold have raised concerns. Apple acknowledged an issue affecting a small number of devices and advised affected customers to contact AppleCare for replacements.
Beyond hardware, investors are seeking clarity on Apple's revamped Siri and its broader AI strategy. They are also assessing whether the company can generate additional revenue by distributing third-party AI agents through its App Store.
Rising memory costs are adding pressure as demand from AI data centres intensifies competition for semiconductor components. Meanwhile, services revenue is forecast to grow nearly 10 per cent to $31.56 billion, marking its slowest expansion in more than three years.
For Ternus, the challenge is to protect profit margins, sustain iPhone demand and demonstrate that Apple can remain competitive as AI reshapes the technology industry.
