Apple Has a Costly Problem Ahead of Earnings as Memory Prices Surge Nauman Khan Mon, November 2, 2026 at 6:14 AM EST 1 min read AAPL -1.23% Trade Apple on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Apple (NASDAQ:AAPL) faces its first major earnings test under CEO John Ternus as expensive memory chips threaten to squeeze profitability despite a busy product launch cycle. Ternus, who replaced Tim Cook in September, will address investors during his first earnings call on Monday.
The results will offer an early look at how Apple is managing higher component expenses while expanding its product lineup. Recent releases include a foldable iPhone, a smart-home hub and touch-screen laptops. However, analysts expect rising memory costs to slow quarterly earnings growth to its weakest pace in six quarters.
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For the July-to-September quarter, Wall Street projects revenue of $113.39 billion, representing nearly 11% annual growth. Net income is expected to reach $29.04 billion, up 6%. iPhone revenue could increase 15% to $56.54 billion, while services sales are projected to advance 10% to $31.56 billion.
Ternus will also face questions about Apple's artificial intelligence strategy and its planned Siri improvements. Apple shares have advanced 27% this year as investors have favored its measured spending on AI infrastructure.
