Apple CEO Ternus says iPhone Duo supply "constrained"; fiscal Q4 earnings cause stock to crash

Apple CEO John Ternus hosted Apple's fiscal fourth-quarter earnings conference call, and of course, the new Apple CEO was inundated with questions pertaining to the iPhone Duo. There were questions about the issues with the display, as what Ternus calls a small percentage of units are showing signs of cracking down the center of the inner display along the hinge line.

Apple CEO Ternus says only a small percentage of iPhone Duo units have cracked screens

Reports also say that there is a horizontal line breaking off from the center crack, made up of a bright white light. The CEO continues to assert that this is happening to a very small percentage of Duo models and these units have been returned to Apple where they are being replaced.

The tech giant is working to get the Duo into as many hands as possible

When the first foldable iPhone was released in October, supplies were low, and demand was high. Ternus said on Monday that "Duo is constrained as of today," not exactly a surprising comment. He also said that Apple is working hard to get the Duo into as many hands as possible as quickly as possible.

CEO Ternus, who replaced Tim Cook at the start of September, said that the ramp-up has been going smoothly, but Apple cannot yet predict when the iPhone Duo's supply and demand will be in balance.

Ternus says that Siri is now handling 2.5 billion requests daily

Ternus also had some things to say about Siri AI. The executive said that the current version of Siri, including AI and traditional requests, handles 2.5 billion requests a day. Back at WWDC 2024, Apple made it known that, at the time, Siri handled 1.5 billion voice requests daily.

The CEO, who is the third to have this title at Apple since Steve Jobs was named interim CEO in 1997, dropping the interim label in January 2000. In August 2011, Tim Cook replaced Jobs for good, and Ternus took over this past September 1.

Apple reported its fiscal fourth-quarter earnings report today, and we should start with the performance of Apple's most important product, the iPhone. Wall Street expected Apple to report Q4 revenue for the handset of $56.54 billion and instead, iPhone sales for Q4 amounted to $57.58 billion.

For the fourth fiscal quarter of 2026, iPhone revenue increased by 17.4% on a year-over-year basis. Very little of this revenue for 2026 was due to the Duo. For all of fiscal year 2026, iPhone revenue rose over 21% to $254.10 billion, from fiscal 2025's $209.59 billion.

The iPad had a pretty tough quarter, as its fiscal fourth-quarter revenue declined more than 10% to $6.23 billion, failing to reach analysts' forecast of $6.7 billion. For all of fiscal 2026, iPad revenue came to $27.93 billion versus $28.02 billion the year before.

After the iPhone, do you know which business segment is Apple's largest? It is the Services unit, which generated $31.57 billion in revenue for fiscal Q4 and $123.30 billion for all of fiscal 2026.

After the earnings were released Monday afternoon, Apple's shares plunged nearly $10 more

During regular trading hours, Apple shares plunged $6.31 or 1.83% to $338.32. But more damage was done after hours as the Wall Street darling plunged an additional $9.51 (or 2.81%) to $328.81.

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