Apple beats forecasts in John Ternus's first results as CEO but warns AI-driven memory chip costs will squeeze margins
John Ternus, Apple's new chief executive, whose company's foldable iPhone Duo sold out within hours of launch despite complaints of cracked screens near the hinge.
Apple's new CEO John Ternus warned that memory chip costs are at "unprecedented" levels and will continue rising beyond the current quarter, sending shares down as much as 4% in after-hours trading before paring losses to 2%.
Revenue hit $114.48bn, up 12%, beating Wall Street's $113.39bn estimate, with iPhone sales of $57.58bn the standout.
Apple forecast gross margin of 45-46% for the holiday quarter, down from 47.9%, and services growth of 8-9%, below analyst expectations of 10.7%.
China revenue of $17.54bn missed estimates of $18.75bn, and the foldable iPhone Duo — priced near $2,000 — is facing customer complaints about cracked screens near its hinge.
