Apple is set to release its fiscal fourth-quarter earnings report after Monday’s market close, marking the first under new CEO John Ternus. Analysts expect an 11% revenue increase to $113.35 billion, the slowest growth in the last four quarters, according to Koyfin. The report comes amid mixed reviews for Apple’s recent product launches, including the foldable iPhone Duo and touchscreen MacBooks, which began shipping in the current fiscal first quarter.
Investors are closely watching how Apple plans to manage rising memory prices, which could impact component costs and demand. The iPhone Duo has faced questions about hinge and screen issues, despite strong demand indicated by longer wait times. Apple’s stock hit an all-time high last week, surpassing Nvidia’s market capitalization, driven by excitement around new devices and the company’s restrained spending on AI compared to other Big Tech firms.
Analysts at Morningstar highlight iPhone revenue and December quarter guidance as key metrics, noting that while year-over-year growth is expected, memory inflation could affect unit prices. The services business is projected to grow nearly 10% to $31.56 billion, its slowest pace in over three years. Retail sentiment on Stocktwits has turned ‘extremely bearish,’ with some traders expressing concerns about overvaluation and screen issues with the iPhone Duo.
Apple’s shares are up 27% year to date, outperforming other tech giants like Microsoft, Alphabet, Meta, and Amazon. However, Bank of America recently removed Apple from its ‘US 1 List’ of top stock picks, reflecting mixed views on Wall Street. Among analysts, 24 of 43 rate AAPL as ‘Buy’ or higher, 13 as ‘Hold,’ and six as ‘Sell’ or lower.