Apple expects memory costs to continue to increase in the December quarter and beyond, CEO John Ternus said during today's earnings call . Ternus, COO Sabih Khan, and CFO Kevan Parekh all commented on Apple's struggle with memory. "What we're seeing with memory pricing right now is unprecedented," said Ternus. He said Apple saw higher memory costs in the September quarter, and the December quarter will be worse. "Looking beyond the December quarter, we see the pricing for memory purchases continuing to increase," he said. Apple was able to offset September costs by using memory it stockpiled at lower prices and securing lower prices on some non-memory components. Apple expects the same factors to cover some of the December increases, along with price increases on iPads, Macs, and iPhones in June and September. An analyst asked if prices could increase again, but Khan, who took the question, avoided offering a direct answer. Parekh said Apple's price increases were done "reluctantly" and the company is trying to balance the impact. I think what we try to do is evaluate, and in doing that, we evaluate the unit's revenue margin, and we're really being thoughtful and deliberate at evaluating kind of the short-term and long-term considerations. And we really believe we're balancing this well. Ternus said Apple expects a declining benefit from pre-purchasing memory over time. Apple's inventory more than doubled year over year to $14.5 billion, which suggests Apple is buying up memory before prices go up yet again. "As we work to improve supply, our manufacturing purchase obligations have increased by $33 billion from June to the September quarter, which you'll see in our annual filing when it comes out tomorrow," he said. Apple expects gross margin to drop from 47.9 percent in the September quarter to 45 to 46 percent in the December quarter, primarily because of higher memory costs, plus some Siri AI costs. Mac and iPad supplies will be constrained in the December quarter because of memory issues. This article, " Apple Dodges Question on More Price Hikes as Memory Costs Climb " first appeared on MacRumors.com Discuss this article in our forums
After reporting a Q4 that rivals previous Apple holiday quarters, Apple has hinted that even with product constraints holiday quarter earnings will be its best ever with as much as 10% growth year-over-year. iPhone Duo could help drive Apple to another record-breaking holiday quarter Apple CFO Kevan Parekh shared some of Apple's forward-looking statements about what it might expect during Q1 2027. It has consistently been Apple's best quarter every year, and this one is expected to break records yet again. During Apple's Q4 earnings call , Parekh shared that Apple is expecting revenue to grow between 7% and 10% year-over-year. He suggested that this "reflects our best view of constrained supply." Continue Reading on AppleInsider | Discuss on our Forums
Siri handles more than 2.5 billion requests a day, a figure Apple revisited during its November earnings discussion as it works to make the assistant more capable with AI. Siri AI CEO John Ternus repeated the number as Apple reported its fiscal fourth-quarter results, although the milestone isn't new. Lilian Rincon, Apple's vice president of product marketing for artificial intelligence, first revealed it during the September 9 iPhone event. At WWDC 2024, Apple reported that Siri handled 1.5 billion voice requests daily. The newer figure is more than 1 billion higher, but the company hasn't said whether the two numbers measure the same kinds of interactions. Continue Reading on AppleInsider | Discuss on our Forums
John Ternus will participate in his first Apple earnings call as the company's CEO today. The call begins at 2 p.m. Pacific Time / 5 p.m. Eastern Time. Ternus and Apple's CFO Kevan Parekh will discuss the company's earnings results for the third quarter of the 2026 calendar year on the live-streamed conference call. While the call is primarily intended for Apple shareholders and Wall Street analysts, anyone can listen live for free on Apple's Investor Relations website , with no registration required. The call should last around one hour. Ternus and Parekh will read their prepared remarks, and then they will take questions from analysts. Apple released the following products in the quarter, which ran from June 28 to September 26: Mac Mini With M6 and M5 Pro Chips Mac Studio With M5 Max and M5 Ultra Chips New Apple Polishing Cloth iPhone 18 Pro and iPhone 18 Pro Max Apple Watch Series 12 Apple Watch Ultra 4 AirPods 5 Beats 360 Wrist Strap for iPhone 18 Pro and AirPods Pro 3 New Apple Watch Charging Puck iPhone Duo was announced during the quarter, but pre-orders did not begin until October 16, so the quarter does not include any revenue from that device. If you miss the call, a recording will be available for replay on the page later in the day. Tags: AAPL , Earnings , John Ternus This article, " John Ternus Hosting His First Earnings Call as Apple CEO Today " first appeared on MacRumors.com Discuss this article in our forums
