John Ternus to Reveal First Product Line as Apple’s CEO
Since stepping into the CEO role on September 1, John Ternus is set to lead Apple’s highly anticipated product launch event, "Surprise and Shine," scheduled for September 9. This will mark his debut presentation as the company’s chief executive and showcase the initial lineup under his leadership. Expectations focus on the upcoming iPhone 18 Pro and Pro Max models, along with strong rumors surrounding Apple’s first foldable iPhone, potentially named the iPhone Ultra. Additionally, refreshed versions of the Apple Watch, MacBook, iPad, AirPods, and a new generation Home Hub are likely to be introduced.
Apple Shares Gain on New Product Anticipation
Driven by excitement over the forthcoming product releases, Apple’s stock has surged approximately 8% in the past month. Since April 1, shares have climbed around 30%, with a year-to-date increase of roughly 21%. It’s important to note market behaviors that usually accompany Apple launches, including initial buying on rumors followed by profit-taking once the news is officially released.
Strong Quarterly Results Signal Steady Growth Despite Future Headwinds
Apple reported a third fiscal quarter revenue of $109 billion, reflecting a 16% year-over-year increase, while net income rose 27% to $29.4 billion. iPhone segment sales grew 22%, generating $54.2 billion in revenue. However, market analysts anticipate the fiscal fourth quarter ending in September to see a slight growth deceleration, with forecasted revenue growth between 9% and 11%. This outlook factors in currency fluctuations which are expected to pressure sales by 2.5 percentage points as well as supply chain challenges. The iPhone is still projected to maintain solid double-digit sales growth mid-year, though gross margins are expected to contract to 47%-48% from 50.1% in the previous quarter.
Foldable iPhone Seen as a Key Revenue Driver in the December Quarter
Apple’s anticipated release this fall of the iPhone 18 Pro series alongside its first foldable iPhone could significantly enhance revenue in the December quarter. Industry sources suggest the new models will be priced 10% to 20% higher than their predecessors, driven in part by increased memory costs. The foldable variant is expected to carry a price tag north of $2,000. Morgan Stanley analysts estimate that just the foldable iPhone could contribute roughly $14 billion in December-quarter revenue. The firm maintains a "buy" rating on Apple with a price target of $360, implying about 9% upside from the current share price near $330.
Valuation Stays Elevated as Investors Eye Performance Under New Leadership
Trading at a price-to-earnings ratio around 37, Apple shares are considered relatively expensive. With the September quarter earnings release expected in October, some short-term stock price fluctuations may occur. Investors will closely monitor how the market receives products launched under John Ternus and whether these innovations translate into sustained growth for the tech giant. Ultimately, Ternus’ inaugural product rollout, especially the debut of the foldable iPhone, remains a pivotal moment for both the company and its shareholders.