Apple's new boss gives his first results on 2 November. Will the shares fall?
John Ternus took over from Tim Cook as Apple's chief executive in September. On 27 October Apple said some new folding iPhones had a screen fault.
What happened
Apple said it was aware of an issue with the inner screen of a small number of its new iPhone Duo folding phones, and asked owners to contact it for a replacement.
Apple reports its results for July to September on . It is the first time John Ternus speaks to investors as chief executive. He took over from Tim Cook on , and Cook stays as executive chair. Apple’s webcast with investors starts at 5pm New York time, after the US stock market closes.
The new folding iPhone is not in these numbers. Ternus showed the iPhone Duo himself on , and it went on sale on , after the quarter ended. It costs from £1,999 ($2,668) up to £3,199, the most Apple has ever asked for an iPhone. On Apple said it was aware of “an issue impacting the inner display on a small number“ of the phones and asked owners to contact it for a replacement. It did not say how many phones are affected. The Duo goes on sale in 28 more markets around the world on .
Tim Cook warned investors about this quarter in July. On Apple said its sales grew 16% to $109.4bn in the three months to June, and iPhone sales grew 22%. Cook said shortages of parts would spread to the iPhone and iPad, and said the cause was demand that Apple had not expected. “We’ve got a quarter ahead where we’ll be scrambling on the supply side“, he said. Apple shares fell more than 7% in trading after the market closed that day.
Sources: bbc.co.uk
The Pattern
We looked for cases where a large company gave its quarterly results for the first time under a new chief executive, who had replaced a leader of eight years or more. We found nine such reports since 2000, all at US companies. Microsoft is there twice, in 2000 and 2014. One of the nine is Apple itself: Tim Cook’s first results in , when a new iPhone also went on sale after the quarter ended.
Show the other 7 cases
The Read
In seven of the nine first reports the shares went down, even at Amazon in 2021 and Microsoft in 2000, where profit per share beat forecasts. Both times the outlook for the next months worried investors. The shares went up only at Cisco and at Microsoft in 2014, where profit and sales both beat forecasts. At Apple in , Tim Cook’s first results, a new iPhone had also gone on sale after the quarter ended, and the shares fell 5.8%.
This time Apple gave its bad news early. Tim Cook warned in July that this quarter would be short of parts, and the shares fell more than 7% then, so a weak iPhone number on would not be new. A year ago the shares rose slightly after the same report. All nine earlier reports were at US companies, and in seven of them the shares moved in trading on the evening of the results, while this question looks at the close on , a full day later.
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