$109 billion in revenue for Apple's (NASDAQ: AAPL) June-ended quarter, up 16% year over year, is the financial baseline John Ternus inherits as the company's new chief executive. iPhone sales accounted for $54.2 billion of that total, a 22% YoY gain. Earnings rose 27% to $29.4 billion.
Ternus took the CEO role on Sept. 1, succeeding Tim Cook, who led Apple for 15 years. His first act on the public stage is the "Surprise and Shine" event on Sept. 9, where he is expected to introduce himself alongside a new product roster.
| Metric | June quarter (reported) |
|---|---|
| Total revenue | ~$109B, +16% YoY |
| iPhone revenue | $54.2B, +22% YoY |
| Earnings | $29.4B, +27% YoY |
| Gross margin | 50.1% |
September quarter: the step-down
Apple's own guidance calls for YoY revenue growth of 9% to 11% in the September quarter, well below the June pace. Foreign exchange rates account for 2.5 percentage points of that headwind. Gross margin is guided at 47% to 48%, a meaningful pullback from 50.1%, and executives said on the latest earnings call that iPhone sales should grow in the mid-teens year over year.
What the new hardware could move
The "Surprise and Shine" lineup is expected to include the iPhone 18, iPhone 18 Pro, and iPhone 18 Pro Max, alongside Apple Watches, MacBooks, iPads, AirPods, and a new Home Hub. The most anticipated product is the foldable iPhone, which insider site Mac Rumors says will be called the iPhone Ultra, expected to retail above $2,000. Experts anticipate the iPhone 18 models will be priced 10% to 20% above their iPhone 17 counterparts, with higher memory costs as a driver.
Morgan Stanley estimates the foldable phone alone could generate $14 billion in Apple revenue in the December quarter. The firm carries a buy rating with a $360 per share price target. At the current $330, that implies roughly 9% upside. Apple trades at 37 times earnings.
The stock has climbed about 30% since April 1 and is up roughly 21% year to date, with an 8% move in the single month leading into Sept. 9.