Apple's Ternus Faces First Earnings Test: Key Numbers

Quick Answer: Analysts expect Apple to report revenue up nearly 11% to US$113.39 billion for the July-September quarter, according to LSEG data, with net profit rising about 6% to US$29.04 billion. Analysts also expect rising memory-chip costs to drag quarterly profit growth to its weakest in six quarters. For shareholders, the test is whether the holiday-quarter outlook and the iPhone Duo foldable can offset that squeeze after Apple shares rose about 27% this year.

Apple earnings will be the first real test for CEO Ternus, who took the reins from Tim Cook in September. He has overseen the launch of Apple’s first foldable phone, a smart home hub and touch-screen laptops, all shipping in the current fiscal first quarter.

Apple is not listed on Bursa Malaysia, so Malaysian investors would need a foreign-market account to hold its shares. The source reports US dollar figures only, so no ringgit values appear below.

What Do Analysts Expect From Apple Earnings in July-September?

Apple earnings test under CEO Ternus — Apple’s new CEO Ternus faces his first earnings test this quarter.

Analysts’ estimates for the fiscal fourth quarter, based on LSEG data, point to growth across the main lines:

Revenue: up nearly 11% to US$113.39 billion
Net profit: up about 6% to US$29.04 billion
Services: up almost 10% to US$31.56 billion, its slowest pace in more than three years
iPhone sales: up about 15% to US$56.54 billion, slowing from about 22% growth in the previous three months

The quarter captures just nine days of sales of the iPhone 18 Pro models. Services growth is worth monitoring, because it has slowed after years of rapid expansion.

Apple's Ternus Faces First Earnings Test: Key Numbers — Photo: Free Malaysia Today

Why Could Memory Costs Push Apple Profit Growth to a Six-Quarter Low?

Cook had called rising memory costs a “100-year flood”. Analysts expect those costs to drag quarterly profit growth to its weakest in six quarters.

The gap between about 11% revenue growth and about 6% profit growth shows the cost pressure at work.

Can the iPhone Duo Lift Apple’s Holiday Quarter Despite Screen Cracks?

The iPhone Duo, Apple’s first foldable, came out on Oct 23 and starts at US$1,999 in the US. Its online orders sold out within minutes.

Some buyers reported cracks and lines along the inner display’s central fold, prompting Apple to offer replacements.

IDC analyst Nabila Popal expects demand to keep exceeding supply despite the screen problems. She said the test is how quickly Apple can replace affected devices while supplies remain tight.

Bank of America estimates Duo buyers face average delivery waits of 79 days, with shipments stretching into January.

Is Ternus’ AI Strategy Enough to Revive Apple Services Growth?

Meta Platforms’ Muse agent took App Store rankings by storm in recent weeks. Apple is marketing its AI systems toward “everyday people” rather than Silicon Valley insiders.

OpenAI, which Apple is suing over alleged trade-secret theft, is developing devices aimed at displacing the iPhone as the central device in people’s lives.

Dan Morgan, portfolio manager at Synovus Trust, which owns Apple shares, said: “Recent agentic innovation far outpaces our experience with Siri AI, but Apple has acknowledged that Siri AI … is far more focused on trust/privacy.”

Morgan added that investors want to know whether Apple could profit by distributing third-party AI agents through its App Store and taking a cut of the business they generate.

Why Have Apple Shares Outperformed Big Tech This Year?

Apple shares have risen about 27% this year. That beats Microsoft, Alphabet, Meta and Amazon as investors seek shelter from concerns over the cost of building AI infrastructure.

Apple’s reluctance to join the massive AI spending race has worked in its favour for now.

Key Takeaways

Analysts expect revenue of US$113.39 billion, up nearly 11%, and net profit of US$29.04 billion, up about 6%.
Memory-chip costs could push quarterly profit growth to its weakest in six quarters.
The iPhone Duo sold out online, but some buyers report screen cracks and Bank of America estimates 79-day waits.
Services growth is the slowest in more than three years, and the App Store AI agent question is the key test.
For Malaysian holders, Apple’s results are worth monitoring through a foreign-market account. Check Trading Account Types in Malaysia to see which setup fits.

Disclaimer: This article is for general information only and is not investment advice. Figures come from FMT’s report citing LSEG data. Please do your own research and consider your financial situation before making any investment decision.

Frequently Asked Questions

What is Apple’s expected revenue for July-September?

Analysts expect Apple revenue to rise nearly 11% to US$113.39 billion for the July-September quarter, according to LSEG data. That is the fiscal fourth quarter.

Is Apple listed on Bursa Malaysia?

No, Apple is not listed on Bursa Malaysia. Malaysian investors would need a foreign-market account to hold its shares.

How much does the iPhone Duo cost?

The iPhone Duo starts at US$1,999 in the US. It came out on Oct 23 and sold out online within minutes.

How long are iPhone Duo delivery waits?

Bank of America estimates Duo buyers face average delivery waits of 79 days. Shipments are expected to stretch into January.

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Apple’s Ternus Faces First Earnings Test: Key Numbers