Apple is set to report earnings with investor expectations heightened by continued strength in demand for its latest devices, according to market commentary from etoro. In a preview published ahead of the company’s upcoming results, the firm said the focus is shifting from headline growth to whether Apple can sustain momentum while protecting profitability.
etoro analyst Josh Gilbert, Lead Analyst APAC and Middle East at etoro, said Apple Chief Executive John Ternus is facing his first earnings announcement with expectations “already running high.” Gilbert noted that Apple’s shares have risen by roughly 13% since its July earnings announcement, adding that the stock has outperformed the S&P 500 over the same period.
Demand strength meets supply and margin tests
Gilbert said demand appears to be holding up, “particularly for Apple’s new foldable iPhone Duo.” He pointed to delivery wait times as an indicator of consumer interest and referenced guidance that Apple expects mid-teens iPhone revenue growth for the quarter.
However, the analyst said the more important question is whether Apple can produce enough devices to meet demand without eroding margins. He highlighted that this issue is especially relevant in the UAE market, where the “Duo” launched on 23 October and was priced from AED 8,499, making it one of the first markets to test the premium foldable device.
While early interest is said to be encouraging at that price, Gilbert added that sustained sales will likely depend on continued availability.
Gross margin guidance and memory cost pressure
Profitability is expected to be a key metric in the earnings report. The preview said Apple has guided to gross margins of between 47% and 48%, while “rising memory costs” continue to put pressure on profit performance.
According to the commentary, Apple introduced price increases in September aimed at offsetting those costs, though Gilbert said there is “little indication that memory prices will ease in the near term.”
The preview also pointed to services as a potential buffer. It said Apple’s services business has historically helped cushion hardware-related cost pressures, with gross margins of approximately 75%. However, it added that services revenue growth is expected to slow to around 10% this quarter, compared with 15% a year earlier, reducing the near-term offset from one of Apple’s most profitable segments.
Leadership transition and the next wave of products
The earnings preview framed the results as another milestone in Apple’s leadership transition. While Tim Cook’s tenure, the commentary said, was largely defined by the expansion of services, Ternus is described as placing renewed emphasis on hardware innovation.
Gilbert said investors will be watching how Apple’s foldable iPhone and its first touchscreen MacBook are expected to perform as new products arrive within weeks of each other. The preview suggested the market will be looking for reassurance that strong demand can translate into higher sales without sacrificing margins, and that execution across Apple’s hardware business will be important as investors wait for clearer payoffs from its AI strategy.
The information in this article reflects analyst commentary and guidance cited by etoro. It does not constitute investment advice.
