Apple’s new Chief Executive Officer, John Ternus, is set to face his first major earnings test as investors assess the company’s financial performance, rising memory-chip costs and outlook for the crucial holiday shopping season.
Analysts expect Apple to report $113.39 billion in revenue for its July–September quarter, representing an increase of nearly 11% year over year. Net profit is projected to rise by approximately 6% to $29.04 billion, according to LSEG data.
However, rising memory-chip prices are expected to put pressure on profit margins, potentially slowing earnings growth to its weakest pace in six quarters.
Investors Focus on AI and New Products
Ternus, who succeeded Tim Cook in September, is overseeing Apple’s latest product expansion, including its first foldable iPhone, a smart-home hub and touchscreen MacBooks.
Investors will be particularly interested in the performance outlook for the new iPhone Duo, which launched on October 23 at a starting price of $1,999 in the United States. Strong initial demand has been reported, although some customers have raised concerns about display problems.
The holiday-quarter forecast will provide a clearer picture of how much the new device could contribute to Apple’s revenue.
AI Strategy Under Scrutiny
Apple’s artificial intelligence strategy will also feature prominently in discussions with investors. Attention is expected to focus on the company’s plans for its revamped Siri assistant and opportunities to generate revenue from third-party AI services through its App Store.
Despite increasing competition from AI-focused technology companies, Apple’s shares have gained approximately 27% this year, outperforming several major technology rivals.
Key Financial Expectations
Analysts expect iPhone revenue to increase by approximately 15% to $56.54 billion, while services revenue is projected to grow nearly 10% to $31.56 billion.
For Ternus, the first earnings call will provide an important opportunity to outline Apple’s financial priorities, address rising production costs and reassure investors about its growth strategy under new leadership.
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