iPhone sales rise again as Apple CEO John Ternus hails “best company in the world”

APPLE BEATS EARNINGS EXPECTATIONS

 

Apple has played a major role in transforming consumer technology. The Macintosh helped to popularise the personal computer, then Apple moved into music players with its iPod. Later still, it changed the mobile phone industry with its iPhone. Apple created a global brand with its own ecosystem and a loyal customer base interested in its latest products. However, there have been concerns that other tech rivals are leaving the company behind in AI development. Apple’s earnings results are important to customers as well as investors who want to see what the company can come up with next.

 

Apple earnings: strong results:

In its third-quarter results on November 2, Apple reported revenue of $114.5 billion, up 12% from a year earlier. Earnings per share reached $2.10, ahead of the $1.99 expected. It was a record September quarter for the company, with yearly revenue reaching $479 billion. The iPhone remained the main source of growth. Sales rose 17% to $57.6 billion, helped by iPhone 18 Pro and Pro Max demand. Services also had a record quarter, bringing in $31.6 billion. Mac sales were stronger than expected, although iPad and wearables revenue was below expectations. CEO John Ternus used his first earnings call to describe Apple as “the greatest company in the world” and claimed the latest product launches were among the most prolific in Apple's history.

 

iPhone Duo: hard to find

Much of the attention is on the iPhone Duo, Apple's first foldable phone. Other companies such as Samsung might already have a foldable phone, but Apple’s was released on October 23 and quickly sold out, with delivery estimates pushed back to late January 2027. Apple says it cannot currently make enough units to meet demand, and Ternus said it was too early to predict when enough would be produced to meet demand. Its launch could bring foldable phones to a wider audience. The Duo was launched after the September quarter ended, so its sales are not included in these results. The big question is whether Apple can attract customers to a more expensive foldable iPhone and keep them upgrading.

 

Apple outlook: Rising costs to eat into profits?

Despite the earnings beat, investors had concerns about Apple's outlook. The company expects its gross profit margin to fall to as low as 46% in the December quarter, compared with 47.9% in the latest period. The main issue is the rising price of memory chips, as manufacturers struggle to keep up with demand due to companies building AI data centres. Ternus warned that memory costs would continue to rise next year. The company is also spending more on the computing power needed for Siri and other AI features.

 

Apple shares higher this year, but fell after earnings

Apple's share price has gained around 23% so far in 2026 as of November 3. They reached a record high in late October, helped by strong demand for the latest iPhones and growing interest in the company's new products, like the foldable Duo. Tim Cook’s departure and Ternus’ appointment as new CEO in September put the spotlight on Apple’s future direction and what changes the new CEO might bring. However, Apple’s stock price fell 1.8% on November 3, despite the earnings beat. Investors were more concerned about the expected drop in margins due to higher memory costs. Apple may be selling more iPhones, but that might not count for as much if the cost of making them goes up.

 

What next?

Apple expects revenue to grow by 7% to 10% in the December quarter, which would make it the company's biggest quarter to date. It also expects services revenue to rise by 8% to 9%, slower than analysts had hoped. But supply problems could continue to affect iPhones during the busy holiday shopping period.

 

Conclusion

Apple’s latest results show that demand for its products remains strong, but the company can’t take its customers’ loyalty for granted. The iPhone Duo has attracted interest, but higher memory prices and the cost of Apple’s AI work might eat into the money it makes from those sales.