New Apple CEO John Ternus chalks up some early wins, but the honeymoon is over
Apple beat earnings expectations Monday, but it’s facing surging memory chip costs and investor questions about its new Siri AI product.
John Ternus, Apple's new CEO, has faced a mixed reception in his first two months on the job. While Apple posted strong September-quarter earnings, surpassing Wall Street's expectations, investors showed concern over the company's future margins due to a shortage of memory chips and a slowdown in its Services segment. Ternus appeared to rely heavily on scripted marketing points during the earnings call, such as proclaiming Apple as "the greatest company in the world."
The company's AI endeavors, particularly its revamped Siri AI, have also been met with skepticism from investors. Ternus and CFO Kevan Parekh provided few details regarding Siri's roadmap and the company's plans to leverage AI in its products. As Apple faces supply chain challenges, particularly with the foldable iPhone Duo, Ternus remains confident in the company's installed base of over 2.5 billion devices, which he believes will drive future monetization opportunities.
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