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Apple's New CEO Breaks Silence With Bold Promise
3 Sep
Summary
- New CEO John Ternus made a bold prediction for a major upcoming launch.
- Apple's stock dropped after projecting slower revenue and margin growth.
- Supply constraints are described as a '100-year flood' for memory pricing.
On his first day as Apple's eighth CEO, John Ternus deviated from the company's long-standing tradition of corporate restraint. Ternus informed employees of a "huge launch next week that's going to be phenomenal," a stark contrast to the typical vagueness preferred by Apple leadership.
This bold statement arrives as Apple's financial outlook appears more challenging. The company recently reported record June-quarter revenue of $109.4 billion, but its stock declined after management provided guidance for the September quarter. Projections indicated revenue growth between 9% and 11%, falling short of analyst expectations, with gross margin expected to decrease.
Apple's finance chief cited currency headwinds and increasing supply constraints. CEO Tim Cook described the memory component situation as a "100-year flood." Ternus's use of the word "phenomenal" represents a significant forecast, especially given the company's recent warnings about decelerating growth and narrowing margins.
