Apple reported net income of $101.5 bn for the quarter ending 27 June 2026, and on the same day CEO John Ternus used the earnings platform to argue that the iPhone remains the primary AI hub for consumers.
CEO’s AI‑hub message
Speaking to a packed Steve Jobs Theatre audience on 10 September 2026, Ternus said, “Es gibt kein Produkt auf der Welt, das besser dafür gebaut ist, Ihr intelligenter persönlicher Hub zu sein, als das iPhone.” The Handelsblatt report records the full German quote and adds that the smartphone “bleibt die Schaltzentrale des digitalen Lebens – Künstliche Intelligenz macht es wertvoller, nicht überflüssig.” The statement marks Ternus’s first major public appearance since taking the helm.
Foldable iPhone Duo’s role
During the same presentation Apple unveiled the iPhone Duo, a foldable device with a 7.6‑inch inner display and a 5.4‑inch outer screen. The Handelsblatt article describes the Duo as “one of many roles” in Apple’s AI‑centric future, not the flagship AI device. The foldable therefore complements, rather than replaces, the standard iPhone in the company’s hub strategy.
Competitor approaches
Handelsblatt also notes that rivals Meta and Snap are betting on digital glasses as the interface for the AI era. By contrast, Apple is doubling down on the smartphone form factor, positioning the iPhone as the control centre for AI‑driven digital life.
Adding another dimension, the report mentions OpenAI’s backing of former Apple designer Jony Ive on a separate, as‑yet‑unnamed AI hardware project. The divergent paths underscore a market split between smartphone‑centric and accessory‑centric AI strategies.
Financial backdrop
Apple’s balance sheet provides context for the strategic gamble. The company posted $265.6 bn in revenue for fiscal year 2018 and, as of 27 June 2026, held $383.3 bn in total assets, $107.5 bn in shareholders’ equity and 14.6 bn shares outstanding. These figures, drawn from the SEC filings listed in the packet, illustrate the scale of resources Apple can allocate to new hardware development.
| Metric | Value | Period | Source |
|---|---|---|---|
| Revenue | $265.6 bn | FY 2018 (ended 29 Sept 2018) | SEC Form 10‑K |
| Net income | $101.5 bn | Q3 FY 2026 (ended 27 June 2026) | SEC Form 10‑Q |
| Total assets | $383.3 bn | FY 2026 (ended 27 June 2026) | SEC Form 10‑Q |
| Shareholders’ equity | $107.5 bn | FY 2026 (ended 27 June 2026) | SEC Form 10‑Q |
| Shares outstanding | 14.6 bn | FY 2026 (ended 27 June 2026) | SEC Form 10‑Q |
The hub narrative could influence investor sentiment in several ways. First, it reaffirms Apple’s reliance on its massive installed base of iPhone users, a factor that analysts often cite when valuing the company. Second, by positioning the iPhone as the AI gateway, Apple may delay or limit demand for external AI wearables, potentially curbing growth prospects for firms focused on glasses or dedicated AI boxes.
For Meta and Snap, the contrast is stark: their AI‑focused glasses rely on a separate hardware ecosystem, which historically has faced adoption hurdles. If Apple’s hub strategy succeeds, advertisers and developers may continue to prioritize iPhone‑centric AI services, leaving the glasses market to a niche segment.
OpenAI’s involvement with Jony Ive hints at a possible third route – a bespoke AI device that could sit alongside the iPhone rather than replace it. The lack of detail in the packet means the market impact remains uncertain, but the mere existence of a competing project signals that Apple’s hub claim will be tested by external innovation.
What remains unknown
- The pricing of the iPhone Duo was not disclosed in the packet, so its effect on Apple’s revenue mix cannot be quantified.
- Exact timelines for any OpenAI‑backed hardware from Jony Ive are not provided, leaving the competitive timeline open.
- Apple has not released a quantified AI‑related revenue figure, so the financial weight of the hub strategy is still speculative.
What is clear from the Handelsblatt interview is that Apple intends to keep the smartphone at the centre of its AI roadmap, betting that the iPhone’s ubiquity outweighs the allure of emerging wearables. The market will watch whether this bet translates into sustained device sales, higher AI‑service revenue, or a shift in developer focus away from competing glass platforms.
Investors should monitor Apple’s quarterly guidance for any mention of AI‑related services, as well as supply‑chain signals for the iPhone Duo. A strong uptake could reinforce the hub thesis, while tepid demand might embolden rivals to accelerate their own hardware bets.