Apple exceeds sales expectations as AI spending impacts holiday profit margins

Apple exceeded financial expectations for its July to September quarter on Monday, supported by strong iPhone sales and services revenue. France 24 reported that Chief Executive Officer John Ternus, who replaced Tim Cook in September, described the company's current product lineup as its most ambitious yet. [1]

Chief Executive Officer John Ternus expressed optimism for holiday sales, pointing to new devices such as the foldable Duo. However, France 24 reported that Chief Financial Officer Kevan Parekh warned that gross margins will decline in the final quarter of the year. Parekh stated that gross margin is expected to fall between 45 percent and 46 percent, down from 47.9 percent in the September quarter, primarily due to artificial intelligence costs. [1]

Apple was original co-founded in 1976 as Apple Computer Company by Steve Jobs and Steve Wozniak. Jobs later returned as chief executive officer in 1997 and oversaw the development of many of the firm's major products before resigning in 2011. [2]

The financial results follow wider industry trends linked to artificial intelligence development. As FTMQ Tech reported earlier, other technology companies such as IBM and chipmaker SK Hynix also reported strong third-quarter financial growth driven by artificial intelligence demand. [3][4]