CUPERTINO, CALIFORNIA — November 2, 2026. Apple is preparing to release its first quarterly financial results under Chief Executive Officer John Ternus, marking a significant leadership transition as the technology giant confronts rising semiconductor costs, intensifying artificial intelligence competition and growing expectations surrounding its latest products. Investors will closely examine the company’s profitability, iPhone sales and forecasts for the crucial holiday shopping season when results are released later Monday. The announcement represents Ternus’s first major financial test since succeeding Tim Cook on September 1, following a carefully planned leadership transition that placed one of Apple’s most experienced hardware executives at the head of the company.
According to analyst estimates compiled by LSEG and reported by Reuters, Apple is expected to announce approximately $113.39 billion in revenue for its fiscal fourth quarter, covering July through September 2026. That would represent annual growth of nearly 11%, while net income is projected to increase approximately 6% to $29.04 billion. The difference between revenue and profit growth reflects mounting pressure on production costs, particularly memory chips used across Apple’s product portfolio. These figures remain market forecasts rather than confirmed financial results, and their significance will depend on the company’s official disclosure and management’s assessment of future operating conditions.
The cost of memory and storage components has become one of Apple’s most consequential industrial challenges. Former CEO Tim Cook warned in June that the company could no longer fully absorb escalating component prices and would need to increase the prices of certain products. According to estimates from technology research firm TechInsights, memory and storage components for the iPhone 18 Pro could cost approximately $196, compared with about $52 for the previous iPhone 17 Pro. Although these are component-cost estimates rather than audited procurement figures, they illustrate the pressures affecting manufacturers as demand for advanced semiconductors intensifies across the global technology industry.
The shortage reflects structural changes in semiconductor demand, particularly the rapid expansion of artificial intelligence infrastructure. Technology companies developing large-scale AI systems require enormous quantities of advanced memory, placing additional demands on manufacturers already supplying smartphones, computers and enterprise electronics. As suppliers allocate production capacity among competing markets, consumer technology companies face potential increases in component costs and supply constraints. For Apple, whose profitability depends partly on tightly managed manufacturing operations and extensive supplier relationships, maintaining margins while preserving product competitiveness has become a central strategic consideration.
The iPhone remains essential to Apple’s financial performance, with analysts anticipating approximately $56.54 billion in quarterly revenue from the product category, representing growth of about 15%. However, that would mark a slowdown from the roughly 22% increase recorded during the preceding quarter. The reporting period includes only nine days of sales for the iPhone 18 Pro lineup, meaning investors will pay particular attention to management’s expectations for the following months. The holiday quarter is especially important because it captures a larger portion of demand for newly released devices and provides an early indication of consumer willingness to absorb higher prices.
Another closely watched product is the iPhone Duo, Apple’s first foldable smartphone, which began shipping on October 23 with a starting price of $1,999 in the United States. Its launch occurred after the fiscal fourth quarter ended, so its sales will not contribute to Monday’s reported revenue. Early demand has been substantial, with initial online inventories selling out rapidly and analysts reporting extended delivery estimates. Nevertheless, complaints about cracks and lines appearing along the device’s internal folding display have raised questions about durability, prompting Apple to offer replacements to affected customers. The company’s response will be important in assessing whether the new product category can establish lasting consumer confidence.
Apple’s services business presents another strategic challenge. Analysts expect revenue from services to increase nearly 10% to approximately $31.56 billion, potentially representing the slowest growth in more than three years. The division includes activities associated with the App Store, subscriptions, digital content and other services that contribute to Apple’s recurring revenue. Slower growth would increase attention on the company’s ability to develop new digital offerings, particularly as artificial intelligence changes how consumers interact with software, search engines and mobile applications.
Ternus will also face questions about Apple’s position in the global AI industry. Unlike several major technology competitors that have committed extraordinary sums to developing data centers and advanced computing infrastructure, Apple has adopted a comparatively restrained investment strategy. Its approach emphasizes integrating artificial intelligence into consumer devices and services while maintaining established commitments to privacy and product integration. Investors will seek greater clarity about the evolution of Siri, the company’s use of advanced AI models and the commercial opportunities associated with distributing third-party intelligent applications through its ecosystem.
The leadership transition adds significance to these technological decisions. Ternus joined Apple’s product design organization in 2001 and subsequently held senior engineering positions, contributing to the development of devices including the iPhone, iPad, Mac and AirPods. His engineering background gives the company a chief executive closely associated with product development, although managing Apple’s next phase also requires decisions concerning global supply chains, financial performance and competition in digital services. Cook, who remains executive chairman, oversaw a period of substantial international expansion and financial growth, leaving his successor responsible for sustaining performance while responding to a changing technological environment.
Market expectations have intensified following Apple’s strong share-price performance during 2026. Reuters reported that the company’s stock had gained approximately 27% this year, while Euronews noted that Apple regained its position as the world’s most valuable publicly traded company on October 30, reaching a market capitalization of about $5.03 trillion. Such a valuation reflects considerable investor confidence but also creates pressure to demonstrate that product innovation and revenue growth can support future profitability. Financial results exceeding analysts’ estimates may not be sufficient if management’s guidance indicates persistent cost pressures or weaker-than-expected holiday demand.
The significance of Monday’s earnings announcement therefore extends beyond quarterly revenue and profit. Apple must demonstrate how it intends to preserve manufacturing efficiency, sustain consumer demand and strengthen its AI capabilities while navigating an increasingly competitive semiconductor market. The company’s extensive financial resources and established ecosystem provide important advantages, but neither guarantees immunity from rising component prices or changes in consumer preferences. For Ternus, the immediate challenge is to translate technological innovation into sustainable financial performance without undermining the premium product strategy that has defined Apple’s position in the global electronics industry.
As investors await the official figures, three questions remain central: how much rising memory costs are affecting profitability, whether Apple’s newest devices can sustain demand through the holiday season, and how the company intends to compete in an AI-driven technology market. The answers will provide an early indication of Ternus’s strategic priorities and the financial challenges accompanying Apple’s new leadership. More broadly, the results will illustrate how even the world’s largest technology companies must balance technological ambition with the industrial realities of semiconductor supply, production costs and global competition.
Phoenix24: Beyond the numbers, the strategic reality. / Más allá de las cifras, la realidad estratégica.