Apple’s financial performance remains robust, with net profits reaching $57.6 billion for the July-September period, a 17 percent jump over the previous year. Despite this growth, the company is struggling to meet the intense demand for the iPhone Duo, which carries a $1,999 starting price. COO Sabih Khan admitted that the device is currently constrained, with shipments unlikely to stabilize until at least late January. The company declined to provide a firm timeline for balancing supply with the runaway interest.
Rising memory chip costs, fueled by the broader AI industry boom, continue to squeeze margins. CFO Kevan Parekh confirmed that Apple passed these costs to consumers by increasing prices on the iPhone 16, 17, 17e, and Air lines, following similar adjustments to Mac and iPad pricing earlier this year. Ternus described the current memory market as unprecedented, warning that costs are expected to climb further through the December quarter.
Financial statements were bolstered by U.S. Supreme Court-mandated tariff refunds, which contributed one percentage point to the company’s 47.9 percent gross margin. However, with the majority of these refunds now collected, that cushion is set to vanish. To maintain efficiency, Ternus has already initiated internal job cuts, aiming for a leaner operation. While Apple previously explored replacing 5,000 customer support roles with AI agents, those plans have been shelved for the moment.
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