Apple Reports Q3 Earnings Amid AI Strategy Shift and Tim Cook’s Final CEO Call
Apple is set to report its fiscal third-quarter earnings, with analysts expecting revenue of $108.65 billion and earnings per share (EPS) of $1.89. This marks the final earnings call for CEO Tim Cook before John Ternus takes over on September 1. Apple's stock has risen nearly 24% this year amid a broader tech rally, reaching record levels despite global supply chain challenges like memory shortages and rising chip costs. The company is preparing to launch an AI-enhanced Siri powered by Google technology alongside new iPhone hardware in September. While it hasn't announced price hikes for iPhones yet, analysts expect them soon due to ongoing cost pressures. Apple's decision to license rather than build its own large language models (LLMs) has drawn mixed reactions but appears to be gaining investor support as the company maintains strong free cash flow and avoids heavy capital expenditures on AI infrastructure. Investors are closely watching for guidance from Ternus, who will lead the next phase of Apple's strategy. The earnings report could signal whether Apple can maintain its momentum in a competitive tech landscape.
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