The key facts
- Apple's first report under John Ternus, who replaced Tim Cook in September
- LSEG analysts expect revenue of $113.39 billion (+11%) and net profit of $29.04 billion (+6%)
- The iPhone Duo went on sale on October 23 and will not be included in the report; some buyers reported crease defects on the screen
Ternus's first report and expectations for the numbers
Apple's quarterly report, due out Monday evening European time, is seen by investors as the first test for new CEO John Ternus, who replaced Tim Cook in September. According to euronews, citing LSEG estimates, analysts expect revenue to grow by almost 11% to $113.39 billion (€101.5 billion) and net profit to rise by about 6% to $29.04 billion (€26 billion). iPhone revenue is forecast to grow 15% to $56.54 billion, slowing from 22% the previous quarter, while services will add nearly 10% to $31.56 billion — the slowest pace in more than three years.
Why the guidance, not the current numbers, will be decisive
A key nuance of the report is that it will barely reflect the company's main new product: the foldable iPhone Duo went on sale only on October 23, after the reporting period, and the iPhone 18 Pro was on sale for just nine days of the quarter. In the US, the Duo starts at $1,999 (€1,789). AJ Bell analysts Russ Mould, Danny Hewson and Dan Coatsworth noted that the market reaction will most likely be determined by the guidance for the Christmas quarter, which will include Duo sales. Investors are also awaiting updated data on sales of the device: some buyers reported cracks and lines along the central crease of the inner screen, after which Apple offered device replacements.
Rising memory prices and questions about strategy
Another open question is the rising cost of memory chips. In June, Cook warned that Apple would no longer be able to absorb rising costs and would have to raise prices on a number of products. According to a TechInsights estimatecited by euronews, memory and storage components in the iPhone 18 Pro may have cost the company about $196 (€175) versus roughly $52 (€47) in the iPhone 17 Pro, which significantly affects profitability. Ternus's statements on the use of artificial intelligence may clarify the outlook for the services business, while Apple's relatively restrained AI spending contrasts with competitors' large investments in infrastructure. The report comes after Apple on Friday regained its status as the world's most valuable public company, overtaking Nvidia with a market capitalization of $5.03 trillion (€4.5 trillion); AJ Bell analysts meanwhile stressed that with share prices at historic highs, investors expect more than the usual beat of profit forecasts.
