Apple is competing in a smartphone and PC market that has “never been worse,” IDC’s Ryan Reith told CNBC.

Consumer electronics companies everywhere are grappling with surging prices for computer parts, including memory and flash storage that’s used in every smartphone and laptop.

Intel on Friday had its worst day on the stock market since the 1970s, dropping 29%, after the company cited PC softness for a disappointing forecast.

Many companies have responded to component shortages by raising prices or reducing specifications for current devices. Consumers are holding onto their old computers for far longer, driving sales down. 

IDC says the smartphone market is set to drop nearly 17% this year based on shipments. PCs could be down 11%. 

Apple isn’t immune. The company raised prices on almost all of its products since executives warned over the summer that the market was in a “thousand year flood.”

— Kif Leswing

Apple’s new $2,000 foldable phone won’t have any sales for the quarter, which ended last month. While Apple and Ternus announced new iPhones on Sept. 9, the foldable Duo didn’t go on sale until a month later, on Oct 23. 

Some analysts have theorized that Apple’s most committed fans may have been waiting to see the Duo come out before buying it.

There will be a few weeks of sales from the iPhone 18 Pro and iPhone 18 Pro Max, which went on sale on Sept. 18.

— Kif Leswing

Apple investors and customers are still getting to know Ternus, but since he took over for Tim Cook on Sept. 1, the new CEO has embraced his new role as the face of the iPhone company.

Ternus’ first major appearance came nine days into his tenure, when he unveiled the iPhone Duo at Apple’s headquarters. A week later, he was walking the red carpet at the Emmys. He then flew to New York, where he opened the doors at an Apple store to commemorate the new iPhone Pro going on sale. He also went to Austin, Texas, this month to kick off sales of the iPhone Duo, and appeared at an elementary school and an F1 race while on 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 introduction in unveiling the first MacBook with a touchscreen using a format he first tried out in the spring. That’s when Apple launched its low-cost MacBook Neo. Ternus addressed a crowd of media and analysts, giving a five minute speech interspersed with a few short videos. 

Investors will get their first in-depth look at Ternus on Monday. He’s been on the past few calls, but hasn’t given extended remarks, and largely deferred to Cook when asked questions.

— Kif Leswing

Heading into its earnings report, Apple has emerged as the preferred megacap tech stock on Wall Street. The shares are up 27% this year as of Friday’s close, by far outpacing Apple’s leading peers.

It’s also the last among the group (other than Nvidia, which reports next month) to issue quarterly earnings. Investors weren’t kind to the hyperscalers over the past two weeks, scrutinizing their hefty expenses and dwindling cash flows.

Apple is in a much different category as the iPhone maker has avoided running up huge capital expenditures bills, taking a more measured approach to its AI investing.

—Ari Levy