John Ternus, who has been Apple's CEO for eight days, will lead his first keynote, titled "Surprise and Shine," this coming Wednesday. The event is expected to showcase three high-priced iPhones: the 18 Pro, 18 Pro Max, and the first foldable, the iPhone Ultra, with prices starting around $2,000. Standard iPhone 18 and 18e models are delayed until spring 2027.
The new hardware includes Apple's C2 modem with satellite 5G and variable-aperture cameras. Other expected announcements include the Apple Watch Series 12, Ultra 4, and AirPods with cameras. Additionally, a smart home hub, a new Apple TV, and an updated HomePod mini are rumored to be presented.
Apple's AI strategy relies on external models. iOS 27, expected to release on September 14, will integrate Google's Gemini models into Siri and allow users to choose third-party AI models. While ChatGPT is preferred by iOS users by 10 percentage points over Android, Apple lacks its own proprietary AI model in the AI layer.
From a financial perspective, Tim Cook's final quarter as CEO saw revenue of $109.4 billion, a 16% increase, with iPhone sales up 22% and Services revenue at $30.7 billion. Despite this, the stock dropped 6% as investors seek a clear AI business model. ChatGPT alone generated $1.35 billion in App Store revenue in 2025.
The company faces regulatory pressure on App Store commissions across four continents and legal battles with Epic. The Google search default agreement, worth roughly $20 billion, remains but is no longer exclusive, and the DOJ is appealing to end these payments. The NFC chip is now open to rivals.
