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Apple Beats Earnings Estimates as CEO John Ternus Faces Investor Questions
Apple beats September-quarter earnings expectations, but shares dip after hours on its margin outlook.
Key points
- Apple beat September-quarter earnings expectations, but investors sold the stock in after-hours trading.
- Apple expects December-quarter gross margin between 45% and 46%, after 47.9% in the September quarter.
- Apple said CFO Kevan Parekh and COO Sabih Khan would take part in earnings calls going forward.
Why it matters. Apple said memory pricing will keep rising beyond the December quarter, and investors remain unconvinced about its margins and Siri AI strategy.
Apple beat September-quarter earnings expectations on Monday, but its shares fell after hours over its margin outlook. The company expects December-quarter gross margin between 45% and 46%, as a memory chip shortage keeps squeezing margins. John Ternus, in his first earnings call as CEO, called memory pricing 'unprecedented' while Kevan Parekh and Sabih Khan fielded some questions.
Latest updates
Apple Beats Earnings Estimates as CEO John Ternus Faces Investor Questions
Apple reported September-quarter earnings that beat analyst expectations, according to Fortune. It was the first quarterly earnings call for John Ternus, the 51-year-old who became Apple's chief executive two months ago. The reception from Wall Street was less friendly, as investors raised concerns about surging memory chip costs. They also questioned the company's new Siri AI product. Ternus had spent his early months promoting new products, including the foldable iPhone Duo. The results show early strength but signal that the honeymoon period for his leadership is over.