Apple's new CEO Ternus faces first earnings call as memory costs rise

Apple reports quarterly results on Monday evening European time, the first figures since John Ternus replaced Tim Cook as chief executive in September. Investors want his guidance on Christmas sales, rising memory-chip costs and the company's artificial intelligence plans.

Analysts expect revenue to rise almost 11% to $113.39bn and net profit to climb about 6% to $29.04bn, according to LSEG estimates cited by Euronews and originally reported by Reuters. iPhone revenue is forecast at $56.54bn, up about 15%, slower than growth of roughly 22% in the previous three months. Services revenue is expected to grow nearly 10% to $31.56bn, its slowest pace in more than three years.

"It's trick or treat time for new CEO John Ternus who has an opportunity to put his stamp on Apple's AI strategy and future direction," AJ Bell analysts Russ Mould, Danni Hewson and Dan Coatsworth said.

The quarter closed before Apple's foldable iPhone Duo went on sale on 23 October, so its sales will count in the Christmas period. The device starts at $1,999 in the United States. Some buyers have reported cracks and lines along the inner display's central fold, and Apple has offered replacements. Only nine days of iPhone 18 Pro sales fall inside the reported quarter, the AJ Bell analysts said, so "the market reaction is likely to be driven by Christmas guidance".

Memory costs are the other focus. Cook warned in June that Apple could no longer absorb rising memory prices and would have to raise some product prices. TechInsights estimated at the time that memory and storage components in the iPhone 18 Pro could cost Apple about $196, against roughly $52 in the iPhone 17 Pro, Euronews reported.

Ternus's remarks on AI will be read for what they signal about services, where slowing growth has worried investors. Apple's spending on AI infrastructure has been restrained next to that of its rivals.

The results follow Apple's return to the top of the world's most valuable listed companies on Friday, overtaking Nvidia at a market capitalisation of $5.03 trillion. "With the shares trading close to all-time highs, Apple's premium valuation means investors will be looking for more than Apple's customary earnings beat," the AJ Bell analysts said.

Share markets held steady and oil prices eased as the results approached, Reuters reported, a summary also carried by CNA and Global Banking & Finance Review.