Apple’s New CEO to Face Investor Curiosity in Upcoming Earnings Call
On the precipice of his first earnings call this Monday, Apple CEO John Ternus finds himself amidst intense investor scrutiny regarding escalating chip expenses, the company’s artificial intelligence (AI) strategy, and the launch of the iPhone Duo.
Having succeeded Tim Cook in September, Mr. Ternus has spearheaded the introduction of Apple’s inaugural foldable smartphone—a device retailing at $2,000 that has encountered concerns over its durability, notably with reports of screen cracking.
This predicament, which some early adopters have dubbed ‘crackgate’, has been dismissed by Apple as affecting merely “a small number of iPhone Duo units.”
However, an internal memorandum directed to Apple Stores, initially unveiled by MacRumours, suggests the issue may be pervasive enough to necessitate formal communication.
Jacob Bourne, an analyst at Emarketer, articulated in The Independent that, “While the new Duo presents a valuable opportunity to reinvigorate sales, its steep price point coupled with the issue of cracked screens poses substantial hurdles for the tech behemoth.”
Additionally, Bourne mentioned, “Aside from smartphones, Apple’s foray into the smart home domain signifies a notable opportunity amid intensifying competition surrounding AI-enabled gadgets, with Amazon, Google, and OpenAI each vying for a more prominent presence in the daily lives of consumers.”
Apple’s new foldable iPhone Duo at the launch event at the Apple Fifth Avenue flagship store in New York City on October 23, 2026.
As investors gear up for the earnings announcement, they will be particularly vigilant regarding the company’s projections, seeking insight into how a slew of new product launches might mitigate the rising expenditure on memory chips.
In conjunction with the iPhone Duo, Apple recently introduced a smart home hub, an updated iteration of Siri, and the company’s first touchscreen laptops.
It is anticipated that Ternus will confront the escalating memory chip expenditures, with analysts forecasting a downturn in quarterly profit growth—the most sluggish in six quarters.
Furthermore, Apple’s AI strategy will be under scrutiny, as the company seeks to differentiate itself from competitors like Meta Platforms’ Muse agent, which has surged in popularity on App Store rankings in recent weeks.
Competitors such as OpenAI—whom Apple is currently litigating for alleged trade-secret theft—are also navigating the development of hardware intended to supplant the iPhone as the cornerstone of modern life.
How Apple navigates its AI approach could bear significant ramifications for the future of its services sector, which has incited concern among investors due to a noticeable deceleration after years of robust growth.
Dan Morgan, portfolio manager at Synovus Trust—which maintains a stake in Apple—commented, “The pace of recent agentic innovation far eclipses our experiences with Siri AI, but Apple has admitted that Siri is significantly more focused on trust and privacy.”
He further observed that Apple is marketing its AI systems towards “everyday individuals” rather than the tech-savvy Silicon Valley elite, who tend to consume advanced AI models developed by companies like OpenAI.
Investors are eager to discern whether Apple can secure revenue by permitting third-party AI agents on its App Store, thus creating revenue-sharing opportunities.
Interestingly, Apple’s reluctance to plunge into the expansive AI spending race has, so far, served it well.
Its shares have surged nearly 27 percent this year, outperforming rival tech titans such as Microsoft, Alphabet, Meta, and Amazon as investors seek refuge from rising concerns regarding the significant costs associated with constructing AI infrastructure.
Analysts predict that Apple will announce an 11 percent revenue increase to $113.39 billion for its fiscal fourth quarter ending in September, with net profit likely rising around 6 percent to $29.04 billion.
The company’s services revenue is estimated to have appreciated nearly 10 percent to $31.56 billion, marking its slowest growth rate in over three years; while iPhone sales are expected to climb approximately 15 percent to $56.54 billion, a noted decrease from the 22 percent growth recorded in the previous quarter.
Source link: Independent.co.uk.
