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You\u2019ve got a feel a little for John Ternus. It\u2019s not easy following Tim Cook and Steve Jobs. Apple\u2019s new CEO joined a company earnings call yesterday with Apple Chief Financial Officer Kevan Parekh \u2014 and the news wasn\u2019t all rosy. <\/p>\n
Apple\u2019s revenue grew 12% in the September quarter, slightly ahead of Wall Street\u2019s expectations, thanks largely to price hikes, but Ternus said services growth will keep slowing and gross margins will keep falling, partly due to high memory costs. Apple shares fell as much as 4% after he broke the news, according to The Wall Street Journal<\/a>.<\/p>\n Investors have given Apple a pass for skipping the massive AI spending of its rivals, but its new Siri AI chatbot already trails AI agents like Instinct and Muse. Meanwhile, courts and regulators are limiting the fees Apple can charge through its App Store, the biggest piece of its services business.<\/p>\n One bright spot is the $1,999 foldable iPhone Duo, which is selling so fast that shipping dates have slipped to January. Still, Oppenheimer analyst Martin Yang thinks Apple\u2019s stock is overpriced. Investors are paying $36 for every $1 Apple is expected to earn next year. And Yang doesn\u2019t see much room for the stock to climb from here.<\/p>\n<\/p><\/div>\n You\u2019ve got a feel a little for John Ternus. It\u2019s not easy following Tim Cook and Steve Jobs. Apple\u2019s new CEO joined a company earnings call yesterday with Apple Chief Financial Officer Kevan Parekh \u2014 and the news wasn\u2019t all rosy. <\/p>\n Apple\u2019s revenue grew 12% in the September quarter, slightly ahead of Wall Street\u2019s expectations, thanks largely to price hikes, but Ternus said services growth will keep slowing and gross margins will keep falling, partly due to high memory costs. Apple shares fell as much as 4% after he broke the news, according to The Wall Street Journal<\/a>.<\/p>\n Investors have given Apple a pass for skipping the massive AI spending of its rivals, but its new Siri AI chatbot already trails AI agents like Instinct and Muse. Meanwhile, courts and regulators are limiting the fees Apple can charge through its App Store, the biggest piece of its services business.<\/p>\n One bright spot is the $1,999 foldable iPhone Duo, which is selling so fast that shipping dates have slipped to January. Still, Oppenheimer analyst Martin Yang thinks Apple\u2019s stock is overpriced. Investors are paying $36 for every $1 Apple is expected to earn next year. And Yang doesn\u2019t see much room for the stock to climb from here.<\/p>\n<\/p><\/div>\n