Barclays remains underweight Apple, remains ‘cautious on stock’ Barclays analysts wrote in an earnings preview over the weekend that they “remain cautious on the stock given iPhone uncertainties this cycle, limited AI monetization and renewed App Store fears.” on gross margin Bank of America analyst Wamsi Mohan said Friday his team had a “conservative outlook” on earnings due to concerns about gross margin and price increases. The analyst noted that Apple’s gross margins in the September quarter will be boosted by a positive impact from fee refunds, and that margins could decline in coming quarters. Apple reported a gross margin of 49.3% in its June quarter, but warned it would be between 47.5% and 48% in the September period. “Investor focus will likely be on component cost inflation, gross margin durability and service revenue growth,” Mohan wrote in the note. Bank of America maintains a Buy rating on the stock and a $370 price target.—Kif Leswing Tough market for smartphones and PCs due to memory shortage Apple is competing in a smartphone and PC market that “has never been worse,” IDC’s Ryan Reith told CNBC. Consumer electronics companies around the world are grappling with rising prices for computer parts, including memory and flash storage used in all smartphones and laptops. Intel on Friday had its worst day on the stock market since the 1970s, falling 29%, after the company cited PC weakness as the reason for a disappointing forecast. Many companies have responded to component shortages by raising prices or lowering specifications on current devices. Consumers are keeping their old computers much longer, causing sales to decline. IDC says the smartphone market will drop nearly 17% this year based on shipments. PCs could drop 11%. Apple is not immune. The company has raised prices on nearly all of its products since executives warned over the summer that the market was in a “thousand-year flood.” Kif Leswing No iPhone Duo this quarter, but some iPhone 18 sales Apple’s new $2,000 foldable phone will have no sales during the quarter, which ended last month. While Apple and Ternus announced new iPhones on September 9, the foldable Duo didn’t go on sale until a month later, on October 23. Some analysts have theorized that Apple’s most committed fans may have been waiting to see the Duo come out before purchasing it. There will be a few weeks of sales for the iPhone 18 Pro and iPhone 18 Pro Max, which went on sale on September 18. — Kif LeswingTernus has been everywhere John Ternus, chief executive officer of Apple Inc., speaks during an event in Los Angeles, California, U.S., Wednesday, October 28, 2026. Kyle Grillot | Bloomberg | Getty Images Apple investors and customers are still getting to know Ternus, but since taking over from Tim Cook on September 1, the new CEO has embraced his new role as the face of the iPhone company. Ternus’s first major appearance came nine days into his tenure, when he unveiled the iPhone Duo at Apple headquarters. A week later, I was walking the red carpet at the Emmys. He then flew to New York, where he opened the doors of an Apple store to commemorate the release of the new iPhone Pro. He also went to Austin, Texas, this month to kick off sales of the iPhone Duo, appearing at an elementary school and an F1 race during the trip. And he’s had a busy media schedule, including an appearance on the cover of Time magazine. Last week, Ternus continued a new style of Apple product presentation by introducing the first touchscreen MacBook using a form factor it first tested in the spring. That’s when Apple launched its low-cost MacBook Neo. Ternus addressed a crowd of media and analysts and gave a five-minute speech interspersed with some short videos. Investors will get their first deep look at Ternus on Monday. He has been on the recent calls but has not made extensive comments and largely deferred to Cook when asked questions. Kif LeswingStock is Wall Street’s favorite among megacaps. Shares are up 27% this year as of Friday’s close, far outperforming Apple’s major peers. It’s also the last of the group (aside from Nvidia, which will report next month) to post quarterly earnings. Investors have not been kind to hyperscalers over the past two weeks, scrutinizing their hefty expenses and dwindling cash flows. Apple is in a very different league, as the iPhone maker has avoided incurring huge capital expenditures and taken a more measured approach to its investment in AI. —Ari Levy
