Apple CEO John Ternus's first earnings call criticized for "reading from a script"
Apple's new CEO John Ternus's first earnings call was criticized by Bloomberg as a case of "stage fright," saying he hid behind a carefully written script when answering analysts' questions and missed the chance to lay out the "Ternus roadmap." Fortune also noted that Ternus handed some questions to CFO Kevan Parekh and COO Sabih Khan, who will become regular participants in earnings calls going forward. Apple warned this quarter that memory costs continue to rise, and that it will increase RAM spending to build Siri AI data centers.
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Investors didn’t seem overly happy about yesterday’s Apple earnings call despite the record results. That likely reflects the company’s cautious take on margins in the current quarter, but some have also criticized what they describe as a very “scripted” approach by new CEO John Ternus.
Bloomberg was the biggest critic, describing it as a “timid” performance that left analysts “sorely disappointed” …
Bloomberg’s Dave Lee didn’t hold back.
Apple investors and fans hoping to get an insight into the philosophy of new Chief Executive Officer John Ternus on Monday were left sorely disappointed. The 51-year-old’s first earnings call was a timid affair, with Ternus taking cover behind a carefully written script as analysts peppered him with questions.
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Newly minted CEO plays it safe during his first high-stakes earnings call? Absolutely shocking! Seriously, what did Bloomberg expect? View all comments
Lee acknowledged that the slump in pre-market trading will have been largely driven by Apple’s caution about rising expenses in the current quarter. The company said that memory costs were continuing to rise and that building out Siri AI data centers we’re going to add to the RAM bill. But he argued that Ternus missed an opportunity to talk up the company.
In front of Ternus on Monday night was a chance to counteract the gloom and doom by instilling in Wall Street the fundamentals of the Ternus Doctrine — what he sees Apple becoming under his tenure, the “product guy” taking the company to a new era of innovation. Instead, he spoke like a man glancing at the clock and wishing the minutes away.
Fortune’s Sebastian Herrera was less vocal but echoed some of the criticism.
Ternus fielded some questions but also delegated answers to Chief Financial Officer Kevan Parekh and Chief Operating Officer Sabih Khan, who Apple said would participate in earnings calls moving forward, something the company hasn’t done for years. Ternus projected confidence on the call, but he appeared to stick mostly to scripted marketing points.
9to5Mac’s Take
It will of course take Ternus some time to develop his own style when it comes to all of the varied aspects of the role, including addressing analysts in earnings calls, but I thought he took a measured but optimistic approach. Given the famously reticent style of his predecessor, the criticism strikes me as rather odd.
What’s your take? Please share in the comments.
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