Apple News
Apple slides after supply shortages hurt sales forecast
Apple tumbled in late trading after component shortages weighed on the company’s sales forecast, signaling that industrywide supply constraints are taking a bigger toll than anticipated.
Revenue will rise 9% to 11% in the fiscal fourth quarter, which runs through September, the company said on a post-earnings conference call Thursday. Analysts had estimated growth of more than 12% in the period, which is likely to be the debut quarter for the next iPhone models, Bloomberg News‘ Mark Gurman reports.
Apple has been struggling to secure enough memory chips and computer processors, a situation that forced the company to raise prices on Macs and iPads last month. The supply crunch has also led to extended wait times on key computers like the Mac mini and Mac Studio.
The constraints will affect the iPhone, Mac and iPad in the September quarter, Chief Financial Officer Kevan Parekh said during the call. Currency fluctuations are hampering growth as well, he said.
Apple shares fell about 8% in extended trading following the announcement.
The tech giant’s results also showed weaker-than-expected expansions in China and services, two onetime growth engines. Though total revenue topped estimates, the China sales amounted to $18.8 billion in the fiscal third quarter, well short of the $19.6 billion estimated by analysts.
Services revenue of $30.7 billion also missed expectations of about $31.4 billion.
Chief Executive Officer Tim Cook said constraints would affect more Macs, iPhones and iPads in the current quarter. He likened the memory cost issue to a “100-year flood,” while adding that the chip shortages were fueled by higher-than-expected demand for the iPhone and Mac. He specifically cited consumer interest in the iPhone 17 line and MacBook Neo, a new low-cost laptop.
“This is not a regular supply issue, it’s a demand forecast issue to be candid,” Cook said during the company’s conference call with analysts on Thursday. “We’ve got a quarter ahead where we’ll be scrambling on the supply side.”
Overall, Apple reported fiscal third-quarter revenue of $109.4 billion, up 16% from a year earlier and above estimates, with net income rising to $29.7 billion. iPhone revenue jumped 21.7% to $54.25 billion, while Mac sales rose sharply as well.
MacDailyNews Take: The “disappointing” outlook (if revenue rising 9% to 11% YoY could ever be called “disappointing”) sent AAPL shares down as much as 9.78% in subsequent trading, marking one of the stock’s sharpest declines in more than a year.
If every company is forced to raise prices, and they are, the one with the most affluent customers stands to benefit most. Its buyers can better absorb the higher costs, while users of rival products may rethink their choices based on long-term value and resale potential rather than just the sticker price, helping Apple amass market share in the process.
These sort of irrational haircuts are resplendent gifts that will never stop giving! If you’re in position, take them!
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iPhone 18e expected to jump to 9GB of memory, matching recent analyst predictions
Apple’s next entry-level iPhone is on track to receive a modest but meaningful memory upgrade. According to analyst Jeff Pu of GF Securities, the iPhone 18e, expected to arrive by March 2027, will feature 9GB of memory, a step up from the 8GB found in the current iPhone 17e.
The claim, detailed in a research note released today, aligns with earlier reporting from Apple supply-chain analyst Ming-Chi Kuo, who floated the same 9GB memory figure last month. The increase would bring the more affordable “e” model closer to the memory capacity of higher-tier iPhones, potentially improving multitasking, app performance, and on-device Apple Intelligence features that benefit from additional system memory.
While 9GB is still a relatively restrained amount compared with many Android flagships, the upgrade continues Apple’s gradual approach to boosting memory across its lineup. Previous generations have seen similar incremental gains as software demands (particularly those tied to machine-learning tasks) have grown.
The iPhone 18e is widely expected to follow the same annual spring launch cadence as its predecessors. Beyond the memory bump, further details on the device’s design, camera system, chip, and pricing remain limited at this stage.
MacDailyNews Take: As with all supply-chain rumors, the final specifications could still shift before mass production begins. For now, the dual confirmation from Pu and Kuo strengthens the case that Apple’s most affordable 2027 iPhone will at least get a small but useful memory boost.
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Apple’s rumored security camera: Privacy-focused HomeKit device expected as part of broader smart home push
Apple has not officially announced any first-party security camera, but multiple reports from analysts and journalists indicate the company is developing one (and possibly related products like a video doorbell) to compete more directly with Amazon’s Ring and Google’s Nest. The effort forms part of a wider smart-home hardware expansion that also includes a home hub and updated speakers.
Core Rumors and Sources
Analyst Ming-Chi Kuo reported in late 2024 that Apple was preparing a wireless smart home IP camera for mass production in 2026, with ambitions for millions of units annually and assembly by Goertek. The device is described as designed for tight wireless integration with other Apple products and expected to leverage Siri and Apple Intelligence.
Bloomberg News’ Mark Gurman has repeatedly covered Apple’s smart-home plans, stating the company is working on multiple types of cameras and home-security products. One reported design is a battery-powered camera lasting several months to a year on a charge. It would include facial recognition and infrared sensors to identify people in a room, supporting automation such as turning lights off when someone leaves or playing preferred music for a recognized family member. Users are expected to place cameras throughout the home for both security and presence-based automation.
A Face ID-equipped video doorbell has also been rumored; it could recognize residents and wirelessly unlock a compatible deadbolt. Reports suggest the doorbell may lag behind the primary security camera in development.
Internal code references to a device codenamed J229 (mentioned in late 2025 reporting) describe capabilities including image capture, alarm-sound detection, and multiple sensors (features obviously consistent with a security camera). Some coverage linked support for it to a spring 2026 software window, though timelines have since been described as more fluid.
Expected Features and Ecosystem Fit
Any Apple camera would almost certainly rely on HomeKit Secure Video, which already provides end-to-end encrypted streaming and recording to iCloud+ (with local analysis on a home hub such as a HomePod or Apple TV). Apple has recently expanded the platform: iOS 27 and related software add 4K support for compatible cameras, AI-generated text descriptions of footage, natural-language search across clips (e.g., “package delivery”), and grouping of noteworthy events across multiple cameras. These AI features reportedly require a higher-tier (2 TB) iCloud+ plan.
An official Apple camera would be expected to offer deeper, native integration than third-party options—potentially stronger on-device intelligence, seamless Siri/Apple Intelligence features, and privacy guarantees aligned with Apple’s usual approach (encrypted video that even Apple cannot access). Specifics on resolution, night vision, field of view, indoor vs. outdoor designs, or exact form factor remain unconfirmed.
Timing and Status
Early reports pointed toward 2026 availability, with some speculation around a spring window or a March 2026 “Apple Experience” event. More recent coverage (as of mid-2026) treats the latter half of 2026 or later as the more realistic window, noting that earlier expectations have slipped and that no official confirmation, pricing, detailed specs, or prototypes have been made public.
Apple already supports a limited selection of third-party HomeKit Secure Video cameras (from brands such as Eve, Aqara, Logitech, and others). A first-party device would give the company direct hardware control and a clearer path to showcase new Home app and Apple Intelligence capabilities.
MacDailyNews Take: Credible info from Kuo, Gurman, and others consistently points to Apple developing at least one battery-powered, privacy-oriented security camera with facial/presence sensing for automation, plus possible related products such as a Face ID doorbell. Everything remains unannounced and speculative on exact design, price, and launch date as of late July 2026. Further clarity will depend on official statements or stronger supply-chain evidence.
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Apple stock price plummets as supply chain snarls mar forecast in Cook’s final earnings as CEO
Apple shares fell nearly 10% on Friday after a disappointing forecast revealed struggles to secure enough components amid the AI-driven data center boom straining global supply chains, according to Reuters.
The drop, if sustained, would mark the stock’s worst day since the pandemic-driven selloff in March 2020. It would erase nearly $500 billion from Apple’s market capitalization and return the crown of the world’s most valuable company to AI chip giant Nvidia, days after Apple reclaimed it.
Tim Cook, widely hailed as a supply-chain genius, called the shortages “very significant” and said Apple had limited options to address them, speaking on his final earnings call as CEO before handing the reins to John Ternus in September and becoming executive chairman.
“If even at Apple’s scale they are saying they are out all supply chain flexibility, it’s really bad for everyone,” Ben Bajarin, CEO of tech consultant Creative Strategies, told Reuters.
Big Tech has been scooping up advanced chip-making capacity and memory chips to power its AI data centers, sparking shortages and price increases that are expected to shrink both the personal computer and smartphone markets this year.
Apple had cushioned some of the blow from surging memory costs by drawing on stockpiled inventory, but Cook said on Apple’s conference call that the buffer was fading and shortages of processors were keeping it from meeting strong demand for iPhones and Macs.
Its forecast on Thursday for revenue growth of between 9% and 11% in the current quarter fell short of Wall Street’s roughly 12% estimate, and softer growth in its services business also overshadowed otherwise strong June-quarter results.
Services Weakness Worries Investors
The services weakness worried investors as it came during a stretch of strong iPhone sales, which typically feed the business that takes a cut of App Store purchases and includes everything from Apple Music to Apple TV.
That slowdown could deepen if iPhone sales take a hit from a price increase that many analysts expect during the launch of the new lineup, which typically happens in September, the report noted.
“Apple’s leverage over the supply chain appears to be in question and it’s not clear that AI is serving as any measurable tailwind to products or services, with its future monetization impact still uncertain,” Morgan Stanley analysts said, as quoted by Reuters. “In fact, one could argue App Store softness might even be a result of AI re-prioritizing customer time.”
Still, some analysts said that the iPhone has weathered price hikes before without denting demand significantly and that a recent U.S. leasing deal with Klarna that offers monthly plans for Apple’s devices could soften the blow.
At least four brokerages cut their targets for the company’s stock price, while three raised. That moved the median view to $330, which is $3 lower than the last closing price, according to LSEG data cited by Reuters. The stock has risen 22.7% this year as of Thursday’s close.
MacDailyNews Take: It’s always darkest before the dawn. Just one month to go!
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Tim Cook exits Apple not with a bang, but with a $350 billion whimper
Tim Cook’s fifteen-year run as Apple’s CEO is closing not with a victory lap, but with a sharp reminder of the limits of his signature skill set. Fresh off a record June quarter, the company under his final guidance faces a memory and component crunch that management itself has called a “hundred-year flood,” one that will constrain iPhone, Mac, and iPad shipments in the current quarter. Apple investors responded by promptly erasing some $350 billion in market value. The stumble leaves Cook’s carefully cultivated image as a global supply chain genius looking frayed just a few weeks before he hands the keys to John Ternus.
Rich Duprey for 24/7 Wall. St.:
The problem wasn’t the quarter Apple reported. It was the quarter ahead… Importantly, Apple isn’t warning that customers are disappearing. It is warning that it can’t build enough products to satisfy them…
Wall Street largely views Apple’s problem as delayed demand rather than destroyed demand…
In short, Apple’s latest earnings did not expose a weakening franchise. They exposed the limits of even Tim Cook’s supply-chain expertise during an industrywide shortage unlike anything the company has previously experienced.
The market, though, responded by focusing on the next three months. Smart investors should spend more time thinking about the next three years.
Apple still generates record quarterly results, maintains one of the world’s strongest consumer ecosystems, and serves a customer base that has repeatedly proven willing to wait — and pay — for its products. Regardless of whether memory prices remain elevated for another quarter or two, supply constraints eventually ease. When they do, delayed sales have an opportunity to flow back into Apple’s results.
MacDailyNews Take: The stock’s ugly drop looks like a classic short-term overreaction. Demand remains solid; the real problem is temporary supply constraints. In just one month, Apple gets its first product-focused CEO since Steve Jobs. The fifteen-year operational chapter is finally closing.
Patience, Padawans. Backing up the truck.
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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
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Analysts split on Apple after strong Q3 beat overshadowed by soft Q4 guidance
Wall Street’s reaction to Apple’s fiscal third-quarter 2026 results, released Thursday, July 30th, mixed praise for robust demand with caution over near-term supply and cost pressures. The company posted record June-quarter revenue of $109.4 billion, up 16% year over year and ahead of consensus expectations around $108.9–$109 billion, with diluted EPS of $2.02 versus the roughly $1.89 Street estimate. iPhone and Mac delivered standout growth (iPhone revenue about $54.3 billion, up ~22%; Mac about $10.4 billion, up ~29%), while Services and Greater China came in softer than some forecasts. Gross margin reached 50.1%, aided by roughly 2 percentage points from tariff refunds (about $0.11 of the EPS beat).
AAPL stock sold off sharply after hours and into Friday premarket as investors focused on management’s fiscal Q4 (September-quarter) outlook: revenue growth of 9–11% year over year (implying a midpoint near $113 billion), below the prior consensus near $115 billion. Management cited significant supply constraints (driven by stronger-than-expected demand for iPhone and Mac rather than weak end demand), rising memory costs, limited channel inventory, and a roughly 2.5-percentage-point foreign-exchange headwind. Gross margins were guided lower into the mid-to-high 40s range before potential pricing actions on upcoming products. Tim Cook, delivering his final earnings call as CEO ahead of the planned September handover to hardware chief John Ternus, framed the constraints as temporary and demand-driven.
Analyst notes that followed reflected the split between solid fundamentals and near-term headwinds.
Bullish and constructive voices
Bank of America analyst Wamsi Mohan reaffirmed his Buy rating and maintained one of the Street’s highest price targets at $380. He highlighted several positives, including stronger-than-expected momentum in the iPhone 17 cycle and Mac, arguing that supply constraints—not fading demand—are the primary limiter on near-term growth. BofA remains constructive on the upcoming product cycle and longer-term AI/Siri monetization opportunities.
Wells Fargo raised its price target sharply to $350 from $310 while keeping an Overweight rating. The firm noted the weaker Q4 guide tied to component constraints and cost inflation but pointed investors toward Q1 2027 gross-margin recovery, iPhone 18 pricing strategy, and Services trends.
TD Cowen lifted its target to $400 from $350 and maintained a Buy rating. JPMorgan, Morgan Stanley, and Goldman Sachs trimmed targets modestly but retained positive (Overweight/Buy) ratings. JPMorgan moved its target to $340 from $345, viewing supply issues as largely deferring rather than destroying demand and citing continued strength in the iPhone 17 cycle and Mac. Morgan Stanley lowered its target slightly to $360 from $364 while staying Overweight.
More cautious or bearish takes
Barclays analyst Tim Long maintained a Sell/Underweight rating and cut the price target to $245 from $253, citing Services and Greater China revenue that fell short of his expectations along with the softer overall outlook.
GF Securities downgraded Apple to Hold from Buy, arguing that valuation appears full after the stock’s recent outperformance. Rosenblatt Securities raised its target to $300 from $276 but kept a Neutral rating.
Overall Street consensus remains a Moderate Buy, with a roughly even split of Buys/Overweights versus Holds and a small number of Sells/Underweights. Average price targets clustered in the low-to-mid $320s in the immediate aftermath—implying limited upside or modest downside from the pre-earnings close near $333—though individual targets still span a wide range from the mid-$200s to $400. Analysts broadly agree demand indicators look healthy and that higher iPhone pricing, resilient volumes, and potential AI-related Services upside (including via Siri and iCloud) remain longer-term catalysts. The near-term debate centers on how quickly supply, memory-cost, and FX pressures ease and whether valuation leaves room for further multiple expansion.
MacDailyNews Note: Apple shares closed Thursday at $333.43 before sliding over eight percent after the report. Investors will watch upcoming product launches, component availability updates, and any further analyst estimate revisions as the September quarter unfolds.
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MacDailyNews presents live notes from Apple’s Q326 conference call
MacDailyNews presents live notes from Apple’s Q326 Conference Call with analysts starting at 2pm PDT / 5pm EDT today, July 30, 2026.
This stream is best experienced on an iPhone 7 or later, iPad (5th generation or later), or iPod touch (7th generation) using Safari on iOS 12 or later; or a Mac using Safari on macOS Mojave 10.14 or later. Streaming to your TV requires an AirPlay 2–capable device, or via AirPlay to an Apple TV (2nd generation or later) with the latest Apple TV software or tvOS. Other platforms may also be able to access the stream using recent versions of Chrome, Firefox, or Microsoft Edge (MSE, H.264, and AAC required).
Apple’s live conference call webcast will begin at 2pm PDT / 5pm EDT here.
Apple today posted record third quarter revenue of $109.4 billion, up a whopping 16% year over year, and quarterly diluted earnings per share (EPS) of $2.02, up a staggering 29% year over year (which included a favorable impact of $0.11 from tariff refunds).
Prior to Apple’s earnings release, Wall Street was looking for revenue of approximately $108.9 billion and diluted EPS of $1.89.
Live notes in chronological order:
• Awaiting start of conference call.
• AAPL After hours: $320.07, -13.36 (-4.01%) @ 4:51:50 PM EDT
• AAPL After hours: $318.98, -14.45 (-4.33%) @ 4:58:18 PM EDT
Tim Cook: Good afternoon, everyone, and thanks for joining the call. Today Apple is pleased to report 109.4 billion in revenue—up 16% from a year ago, and a June quarter record. We were able to achieve this despite supply constraints, and sequential foreign exchange headwinds. We continue to see enormous customer enthusiasm for our most popular lineup ever, with iPhone revenue growing 22% from a year ago to reach a June quarter record. We saw so much excitement around the best Mac lineup we’ve ever had, growing a strong 29% to achieve a June quarter revenue record. Service is also set a June quarter record with 30.7 billion in revenue.
We achieved June quarter revenue records in every geographic segment. We were pleased to see strength across the board, with June quarter records in the U.S., Latin America, Western Europe, India, China, mainland, Japan, and Southeast Asia. We also achieved June quarter revenue records in both developed and emerging markets, and saw double-digit growth in most emerging markets.
This year’s WWDC was a wonderful showcase of our latest innovations. We were tremendously excited to unveil the all-new Siri AI, a completely reimagined version of Siri that is profoundly capable, deeply personal, and integrated seamlessly across our platform. And we’ve been absolutely thrilled by the response from people who’ve been using Siri AI in the developer and public betas. The reviews from early users have been phenomenal, and it’s been so wonderful to hear from people who are excited about the capabilities we’ve built. And it underscores our philosophy that building AI that is private, and based on personal context, can change how users find information and get things done with our product in a way that truly enriches their lives. We really couldn’t be more excited about it, and we are feeling incredibly enthusiastic about the impact it’s going to have.
At WWDC, we also announced new tools to help parents keep kids safe online, and we were pleased by the overwhelmingly positive reactions. New child safety features like Browse and Time Allowances will help parents encourage kids to develop healthy digital habits. These new tools integrate guidance from leading clinical and child development research, including the American Academy of Pediatrics. Our goal is to make it easier for parents to manage what their children see, who they interact with, and how and when they can use their devices. We’re looking forward to bringing these new capabilities to users this fall, in addition to amazing new updates across our operating systems.
Now let me turn to the results for the quarter, beginning with iPhone. iPhone revenue for the June quarter was 54.3 billion dollars, up 22% from a year ago. We achieved June quarter records in every geographic segment and set a June quarter record for upgrading. According to IDC, we gained share globally during the quarter. As I’ve said before, this is the most powerful and most popular iPhone lineup we’ve ever had. More people are relying on iPhone every day for AI, powered by the outstanding performance of A19 and A19 Pro. Across the lineup, iPhone continues to deliver the performance, battery life, durability, and camera capabilities that people count on every day. Whether it’s the extraordinary camera system of iPhone 17 Pro and Pro Max, the remarkably thin design of iPhone Air, the balanced performance and durability of iPhone 17, or the exceptional value of iPhone 17e, there’s an iPhone for every customer.
Mac delivered its best June quarter yet, with 10.4 billion in revenue, growing an impressive 29% from a year ago, despite significant supply constraints. This revenue growth was driven by the incredible strength of our latest lineup, with MacBook Pro and the all-new MacBook Neo. According to IDC, we gained share globally. We also set a June quarter revenue record in developed markets and an all-time record in emerging markets, with particular strength in greater China where we had an all-time revenue record. In addition, we achieved all-time records for upgraders and customers new to Mac. With the power of Apple Silicon, the Mac lineup delivers outstanding power-efficient performance, massive memory bandwidth, and next-level AI capabilities. Mac continues to be the ultimate AI powerhouse, excelling at high throughput, on-device inference, and creation across a broad range of AI workloads. And we’re seeing customers increasingly put those capabilities to work, from using Mac mini as a powerful platform for agentic AI, to deploying clusters of Mac Studio systems to run frontier-class models locally. Across the lineup, customers continue to embrace the Mac family. MacBook Neo has been especially popular, with its distinctive design and excellent value resonating with customers around the world. And we’re continuing to work hard to meet demand. MacBook Air, the world’s most popular laptop, continues to deliver the portability and performance customers love with M5. And MacBook Pro, powered by M5 Pro and M5 Max, remains a go-to choice for professionals tackling the most demanding AI development and creative workflows.
And iPad, revenue was 6.2 billion for the June quarter, iPad continues to be the ultimate go-anywhere, do-anything device for students, entrepreneurs, and creators of all kinds, thanks to its incredible power, portability, and versatility. The addition of M4 to iPad Air has made it even more capable, delivering a significant performance boost for everything from personal productivity and immersive learning to advanced creative workflows. Together with the remarkable performance of iPad Pro, the amazing value and versatility of iPad, and the ultra-portable iPad mini, we’re offering customers our strongest iPad lineup ever.
Revenue for Wearables, Home, and Accessories was 7.9 billion dollars, up 6% from a year ago. We grew in every geographic segment and achieved a June quarter record for upgraders for Apple Watch. Our Apple Watch lineup brings together the most comprehensive set of health and fitness features we’ve ever had. We’re delivering useful features backed by research to enable users to better understand their health and well-being. It’s gratifying to receive almost daily reminders of the meaningful impact Apple’s health innovations are having for users all over the world, changing even saving lives. Meanwhile, we continue raising the bar across our AirPods lineup, whether it’s the immersive listening experience of AirPods Pro 3 or the premium listening experience and exceptional active noise cancellation of AirPods Max 2. And with live translation, powered by Apple Intelligence, people are crossing language barriers and connecting like never before.
As I mentioned earlier, we’re excited about the work we’re doing on the next generation of Apple Intelligence, including Siri AI and the AI features we’re developing across our platform. These experiences are intuitive and useful, while also deeply integrated in a way that’s personal and private, with the latest models running on device and on servers using private cloud compute. We begin laying the groundwork for users to have the best possible experience with AI when we introduce the Neural Engine in 2017. Ever since then, we’ve innovated and invested deliberately in silicon, systems, and scalable unified memory architecture designed with AI at their core. What sets Apple apart is the unique combination of massive unified memory bandwidth, industry-leading power-efficient performance, and deep on-device intelligence. All built around the customer experience from the ground up. The result is that Apple has created the world’s best hardware to experience AI, whether it’s using Apple Intelligence, including Siri AI, or third-party offerings. That’s why developers and researchers are increasingly using Apple devices to build ever more advanced tools and models.
Turning to Services, revenue was 30.7 billion dollars, a June quarter revenue record, and up 12% from a year ago, despite significant sequential foreign exchange headwinds. We also set an all-time revenue record in developed markets and a June quarter record in emerging markets. Apple TV continues to leave audiences spellbound, with new releases like Widow’s Bay and Cape Fear, alongside returning favorites like Silo and Sugar. And next week, we’re excited that Ted Lasso is back for his fourth season. It was wonderful to see Apple TV earn the industry’s top honors, adding Tony Awards this year to its Emmy, Grammy, and Oscar wins. We’ve reached that milestone faster than any streamer in history. We’re also looking forward to this year’s Emmy Awards, where Apple has landed a record 89 nominations, leading all networks in both the major drama and comedy series categories with three outstanding drama series nominations and three outstanding comedy series nominations. Widow’s Bay also stands out as the year’s most nominated new program, earning 19 Emmy nominations. And the 6.5 years since launch, Apple TV has earned more than 850 wins, and nearly 3,800 nominations. In time for the World Cup, we expanded Apple Sports to include more than 170 countries and regions worldwide, and made it easier than ever for fans to follow every moment of the tournament from the opening game to the final whistle. At the same time, we’re halfway through an unforgettable year of F1, and Apple TV subscribers have been tuning in all season to follow their favorite drivers and teams.
In Retail, we were pleased to announce Apple Upgrade this week for customers in the US, Apple Upgrade is a new hardware leasing program launched in partnership with Klarna and makes it even easier for customers to get their hands on Apple’s latest products with a plan that’s right for them.
In all of our work, we’re thoughtful and intentional in how we show up for our users and across our communities. That means innovating to protect user privacy with the next generation of Apple Intelligence, or helping parents keep kids safe as I mentioned earlier. In honor of global accessibility awareness day, we unveil new features to help users get more out of the products they use every day. New intelligent capabilities are coming to VoiceOver, Magnifier, Voice Control, and accessibility reader to make them more useful and intuitive. We’re also using on-device speech recognition to generate subtitles for video content without captions. And Apple Vision Pro is adding a feature for power wheelchair users to control drive systems using just their eyes. All of these features were born out of Apple’s longstanding commitment to ensuring that the benefits of technology are shared with everyone.
As we continue to develop new capabilities for users around the world, we’re also doing our part to invest in innovation close to home. Last year, we made a $600 billion commitment to the US over four years, and now, as we said before, we plan to reinvest the tariff refunds we’ve received into the US. We’re pleased with the progress we’ve already made advancing the American supply chain. Earlier this month, Apple announced a new agreement with Broadcom to design and produce custom silicon components and cutting-edge wireless connectivity technologies. The new multi-year agreement with Broadcom, which is part of Apple’s American Manufacturing Programs, is expected to exceed $30 billion. This marks our largest ever American Manufacturing Program commitment. It’s also an important step forward in our work to build an end-to-end silicon supply chain here in the US. We’re excited for the upcoming opening of the Apple Advanced Manufacturing Center in Houston. The center is located in a facility where we currently assemble advanced AI servers. Later this year, we’ll make Mac mini there too. The center will teach students supplier employees and business of all sizes the same innovative processes we use to make our products. The goal is to empower American manufacturers to take their work to the next level and strengthen the entire advanced manufacturing ecosystem.
We have an exciting fall ahead, and an incredible future beyond. Our roadmap is phenomenal, and we are so excited about the way Siri AI will enrich our users’ lives. Throughout all of it, we will remain guided by our North Star, building the best products and services to enable people to do magical things. It’s a special privilege to be part of people’s lives in lasting and meaningful ways, helping them to create, connect, and experience the world around them.
Kevan Parekh: Despite supply constraints. Product’s revenue was 78.7 billion dollars, up 18% year over year, driven by double-digit growth on iPhone and Mac. Both of which set new June quarter records. Our install base of over 2.5 billion active devices has reached another all-time high across all major product categories and geographic segments. Services revenue was 30.7 billion dollars, up 12% year over year. We set revenue records in every services category, including all-time records in cloud services and payment services.
Company gross margin was 50.1%, up 80 basis points sequentially. This included a benefit from tariff refunds, which had a favorable impact of approximately 2 percentage points. When you remove this favorable impact, you would have been at the midpoint of the guidance range we provided last quarter. Product’s gross margin was 40.1%, up 140 basis points sequentially. This also included a benefit from a tariff refunds I just mentioned. Which had a favorable impact of over 2.5 percentage points. Services gross margin was 75.6%, down 110 basis points sequentially, driven by a different mix.
Operating expenses came in at 19.1 billion dollars, up 23% year over year, driven by investments in R&D. Net income was 29.8 billion dollars. Diluted earnings per share was $2.02, up 29% year over year, and included 11 cents of favorable impact from tariff refunds. Operating cash flow was very strong at 34.4 billion dollars. All three of these metrics set June quarter records, even when excluding the tariff refund benefit.
Now, I’m going to provide some more details for each of our revenue categories.
iPhone revenue was 54.3 billion dollars, up 22% year over year, driven by the iPhone 17 family. We grew double digits in the vast majority of markets we track, and reached June quarter revenue records across both developed and emerging markets. The iPhone active install base grew to an all-time high and set a June quarter record for upgraders. According to a recent survey from WorldPanel, iPhone was the top-selling model in the U.S., urban China, the U.K., France, Australia, and Japan. We were thrilled with the response to the iPhone 17 family.
Customer satisfaction in the U.S. was recently measured at 99% by 451 Research.
Mac revenue was 10.4 billion dollars, up 29% year over year, a new June quarter record, driven by the strength of MacBook Neo and MacBook Pro. We grew in both developed and emerging markets, with strong double-digit growth in markets like Latin America, India, and Southeast Asia.
The customer reception to MacBook Neo has been incredible. We continue to attract new customers to the product around the world. As Tim mentioned, Mac had its best quarter ever for customers new to the Mac and for upgraders worldwide, including in the U.S., China mainland, and India. And in the U.S., customer satisfaction for Mac was recently measured at 95%.
iPad revenue was 6.2 billion dollars, down 6% year over year, driven by the continued difficult compare against the launch of the A16-powered iPad in the prior year. At the same time, the iPad install base reached a new all-time high and over half of the customers who purchased an iPad were new to the product
And 451 Research recently measured customer satisfaction at 98% in the U.S.
Wearables, Home, and Aaccessories revenue was 7.9 billion dollars, up 6% year over year, driven by strength in wearables and accessories. And we saw growth in both developed and emerging markets. The wearables install base reached a new all-time high. We set a June quarter record for upgraders on Apple Watch, and over half the customers purchasing an Apple Watch during the quarter were new to the product.
And in the U.S., customer satisfaction on Apple Watch was reported at 95%.
Our services revenue reached a June quarter record of 30.7 billion dollars, up 12% year over year, despite significant sequential FX headwinds. For the total services business, we saw double-digit growth in the vast majority of markets we track. We set records in every category, with June quarter records in advertising, app store, AppleCare, music, and video as well as all-time records in cloud services and payment services. We are optimistic about the long-term future of our services business.
With our large install base of over 2.5 billion active devices, we have incredibly strong foundation for growth opportunities. Our services continue to attract more customers, and we have now surpassed 1.5 billion in paid subscriptions. Both transacting and paid accounts reached new all-time highs in the quarter, with double-digit growth for both in emerging markets. And we continue to improve and expand our services offerings, from powerful updates to creator studio to exciting new features we’re bringing to services later this year, like splitting bills with Apple Cash using visual intelligence.
Turning now to enterprise and education, organizations are using the Apple Platform to drive AI innovation and empower the next generation of students. Starting with enterprise, Morgan Stanley has deployed over 20,000 iPhone 17 devices globally as part of a shift from employee-owned to corporate-owned devices, reliability and security. More companies are choosing Mac for on-device AI advantages, including lower costs, better performance, and enhanced privacy and security. At Disney, creative teams are increasingly turning to Mac for on-device AI workflows that reduce overall cloud token costs and keep their IP secure. And Credit Agrifal, France’s leading retail bank, is using on-device AI and MacBook Pro to streamline regulatory workflows, reducing manual processing time by over 80%.
Our newest addition to the Mac lineup, MacBook Neo, is reaching new enterprise users in many environments, from bank branches to retail storefronts. In education, MacBook Neo continued to accelerate adoption of Apple products. With many districts leveraging Apple Financial Services to deploy at scale. Pinellas County schools, one of the largest districts in Florida, is transitioning 25,000 students from Windows devices to MacBook Neo across its 18 high schools. In Washington, Peninsula School District 401 moved over 8,000 students from Chromebooks to MacBook Neo. And in Oklahoma, Midwest City, Dell City School District purchased over 6,000 MacBook Neos to become an all-Apple district for students. In fact, in the last quarter, about half of the MacBook Neo large purchases by U.S. education institutions displaced Windows and Chromebook devices.
Let’s turn to our cash position and capital return program. We ended the quarter with $147 billion in cash and marketable securities, and $84 billion in total debt. During the quarter, we returned $33 billion to shareholders. This included $4 billion in dividends and equivalents, and $25.8 billion in share repurchases.
As we move ahead, into the September quarter, I’d like to review our outlook, which includes forward-looking information.
Importantly, the color we’re providing assumes that global tariff rates policies and their application remain in effect as of this call, and the global macroeconomic outlook does not worsen from today.
We also expect our September quarter total company revenue to be impacted by two main factors: first, we expect foreign exchange to be a sequential headwind of about 2.5 percentage points to the year-over-year total company growth rate from the June quarter to the September quarter. Second, we expect the impact from supply constraints to increase significantly sequentially. The projected supply constraint in the September quarter affects iPhone, Mac, and iPad. As a result, we expect our September quarter total company revenue to grow between 9 and 11 percent year over year. On iPhone, we expect to continue to see high levels of demand, however, we do expect iPhone revenue to be impacted by these foreign exchange headwinds and supply constraints. Therefore, we expect a September quarter reported growth rate for iPhone to be mid-teens year over year. For services, we expect a September quarter year-over-year reported growth rate to be largely similar to what we reported in the June quarter, after removing the negative sequential impact of about 2.5 percentage points in foreign exchange that we just described.
We expect gross margin to be between 47 percent and 48 percent. This includes an expected benefit of approximately 1 percentage point related to tariff refunds. We expect operating expenses to be between 19.1 billion and 19.4 billion dollars.
We expect OIME to be around 350 million dollars, excluding any potential impact from the mark-to-market of minority investments. And our tax rate to be around 16.5 percent. Finally, today, our board of directors has declared a cash dividend of $27 per share, common stock, payable on August 13, 2026, to shareholders of record as of August 10, 2026.
Before we take questions, let me turn it back over to Tim.
Cook: Thanks, Kevin. Before we get into questions, I just wanted to take a moment to say thank you to all of you. From our shareholders, particularly our long-term shareholders, who have put their trust in us for so many years, to the analysts who have followed our company so closely. As you know, this will be my final earnings call, and John will lead these calls going forward. The transition is going seamlessly, and I am beyond excited for John to step into his new role and lead Apple into its next era. He is truly one of a kind, and there is no better person to take the helm of the company. As I’ve said, I couldn’t be more confident in his leadership, in our executive team, and in the extraordinary people at Apple who are determined to enrich the lives of our users all over the world. We have a bright future ahead, and I truly have never been more optimistic. So thank you all, and now Kevin and I will be happy to take your questions.
Analysts’ Questions
Q: Tim, best of luck. It’s been a pleasure working with you over the years. Maybe to start with, if I think about the 9 to 11 percentile growth that’s guided for September, it’s about 500 basis points or so deceleration versus what we’ve seen in, you know, really in June quarter, even through this year, I would say. Can you just talk about how much of this decel is only supply constraint versus other factors like FX? And if you just flesh out what these supply constraints are, the broadening beyond these advanced SOCs you talked about last quarter as well.
Parekh: Yeah, this is Kevin. How are we doing? Why don’t I start with just kind of describing the sequential change, and then I’ll let Tim jump into kind of a bit more color on supply constraints.
So I think I mentioned in my declarative remarks, we expect the September quarter total revenue to grow by 9 to 11 percent year over year.
And then we expect that to be impacted by two main factors. The first, when we look at kind of going from the June quarter to September quarter, we expect foreign exchange to be a sequential headwind of around 2.5 percentage points to the year-over-year total company growth rate.
And then the second impact is that the impact on supply constraints is we expect that to increase significantly, when we go sequentially from June to September. And that’s projected supply constraint in the September quarter will affect the iPhone Mac and the iPad. And really, when you combine those two factors, you get pretty close to the June overall total company growth rate.
Cook: Yeah, Tim, first of all, thank you for your comments. During the June quarter, we did experience supply constraints primarily on the Mac and to a lesser extent on iPhone and iPad. These were driven by very high levels of demand and, as you’ve said before, we are seeing less flexibility in the supply chain than normal. And the constraints were primarily driven by the availability of advanced nodes that are SSDs or produced on.
If you look forward then into the current quarter, the September quarter, we are continuing to expect high levels of demand. However, with less flexibility in supply chain, we expect the impact from the supply constraints to increase significantly sequentially.
The projected supply constraints in the September quarter as Kevin said affect iPhone, Mac, and iPad.
And so we’re seeing some very significant constraints currently with limited flexibility in the supply chain to remedy it.
Q: Got it. This is really helpful. Thanks a lot for that. And then, Tim, I just have a memory question for you. You know, Apple has historically I think done a really excellent job about delivering capability and utility to customers without really making them pay disproportionately more. The sizing memory inflation seems to challenge that equation for you folks right now. And, you know, there were reports that suggest that you’re seeking greater sourcing flexibility for memory. Can you just talk about, you know, is this sourcing options really about ensuring that you have supply and the way to mitigate memory inflation? Or is it more to preserve the value proposition for your customers? Just any light you could shed on this would be helpful. Thank you.
Cook:Yeah, let me back up and talk about memory in general, because I know this is a subject on many of your minds. If you look at the, as I’ve said on the last call, we paid more for memory in the March quarter than the December quarter. And then, as I alluded to last quarter, we expected to pay significantly more in the June quarter than the March quarter. And that is what happened. It was partially offset by the benefit of carry-in inventory. For September, we expect to pay even higher memory costs. And we’re able to offset partly by a few factors.
And let me walk through kind of what they are. The first is, as you would expect, we have a benefit from some carry-in inventory in the September quarter. However, we believe this we’ll see decreasing benefit from this over time. Beyond the September quarter.
The second is, we’re expecting lower costs on certain non-memory components. That are in our bond. And then if you look beyond September, we see the market pricing for memory continuing to increase which could drive an increasing impact on our business. And we’re continuing to evaluate this. In terms of the sources of supply, you know, primarily the DRAM market has three suppliers. And obviously, if there were more suppliers, that would be good. And it would help us on the supply side and perhaps the pricing side. It’s unclear on the pricing side. But it could help on the supply side. And so we’re evaluating all options.
Q: First, on the Apple upgrade program, could you talk a little bit about, you know, the expected adoption rates across your, you know, 2.5 billion device install base in success? Do you see it shortening the replacement cycle for iPhone or, you know, also having an equal impact to Mac and iPad, which may have not as benefited from device subsidies in the US like iPhone has historically? Thank you.
Cook: If you look at the upgrade program, what it’s all about is making it easier for customers to get their hands on our latest product. With a leasing plan that’s right for them. And of course, as you know, the residual values on Apple products are generally much higher than the residual value on several of our competition. And so it’s a way to get into a product on a fairly affordable basis for particularly for those customers who want to upgrade on some kind of schedule. And so we’re very excited about it. It is offered in our retail stores and so it’s not widely offered in all channels. And so we’ll see what the customer uptake is. But the early feedback on it is quite positive.
Parekh: Yeah, Michael, I’ll just mention that it’s only available in the US right now as well.
Q: Great. Thank you. That’s very helpful. And then, my second question just on iOS 27 and Apple Intelligence. You know, when is the public beta early this month? Could you talk about, you know, learnings from the public beta? Will, you know, the new Siri AI be a demand driver for iPhones this holiday? You know, how does the Apple Intelligence usage to date in the open beta inform how you’re thinking about compute costs and the ability to report. Some of those costs through iCloud Clients? Thank you.
Cook: Yeah, thank you for that. First of all, we are off the charts excited about Siri AI. We had a great reception from WWDC. We released the developer beta immediately after the keynote. The developer feedback has been overwhelmingly positive. The feedback from reviewers and so forth have been overwhelmingly positive. We released it to the public for a public beta a few weeks ago. And the continued feedback is really, really great. I think it’s a very big idea to have AI that’s private that’s based on your personal context and that’s integrated across the operating system. And so we couldn’t be happier with how things are going. In terms of the what it means for compute cost, it’s obviously early going for us. And so I don’t want to say that we have a complete plan for that. We do. Believe there will be people that want to use it a lot. And so we will have some kind of upgrade possibilities on iCloud Plus where people can buy up the stack on iCloud Plus. And we’ll see how the pickup for that is. But we could not be more excited about where the product is.
Q: I wanted to ask about the supply constraints again. And I think people are just trying to make sense of it a little bit this way, is that, you know, the street had you at 12% growth for the quarter of September. And so, you know, you could argue that to get to the 10% you guided, that’s just the FX. And then in the first quarter, which is December, the street had you decelerating quite a bit, you know, to like 8% to 9%. So I think, you know, what we’re struggling with after hours here is how much do you supply constraints really hit you in December? And, you know, impact that? Because, you know, the streets did a pretty good job of give us there as you see it, Tim, and we’d really appreciate it. Thanks.
Cook: Let me talk about the constraints a little more and then Kevin can weigh in on the guidance for revenue. As I had mentioned before, the primary issue is advanced nodes that we run our SOCs on. That’s the primary supply constraint now. And the root cause of it is not a is not a regular supply issue. It’s a demand forecast issue, to be candid, where the iPhone and the Mac are both doing remarkably better than we thought they would do. And we had high expectations. So it wasn’t that our expectations were low, but as you can see, from iPhone’s growth being 22% and Mac’s growth at 29% and the iPhone is 22% year to date as well, that these are extraordinary numbers. And the supply chain just has less flexibility in it than normal. So we’ve been pulling supply ahead. And at some point, there’s a limit to that. And so we’ve got a quarter that we’re going to be scrambling on the supply side, essentially. And Kevin, you want to add on the revenue guidance?
Parekh: Yeah, thanks, Tim. Ben, let me jump in here. And that the dynamics Tim mentioned, combined with the foreign exchange impact I mentioned earlier, sequentially, is really what’s built into the 9% to 11% guidance we’re giving for the September total company revenue year-on-year growth rate. Beyond September, we’re not providing any color at this point. You mentioned December. So we’re not providing any kind of color or guidance beyond the September quarter.
Q: Okay. And then, you know, if I could just ask, and you guys, you know, know what’s in the press all the time, but there’s this little company that is also building a fab in Arizona. That’s, you know, you guys have been speculating you guys could work with that could potentially alleviate some at least your silicon constraints. Is there any possibility that you guys broaden out your silicon providers in a reasonable time frame to alleviate these so we feel better about supply?
Cook: Yeah, let me stress again. This isn’t a partner or supplier issue. This issue is an incredibly strong it’s a great issue in some ways. It’s an incredibly strong iPhone and Mac product cycle that has really yielded demand beyond our expectation. In Arizona, we do source over 100 million components this year out of Arizona. And so we have it is part of our $600 billion commitment to the US. And we could not be more pleased with how that fab has ramped and is producing for us.
Q: You know, I want to maybe focus on pricing here, Tim, and kind of unprecedented for you to take pricing in the ways that you have. I guess two related questions is just, you know, is it your intention to pursue some of these multi-year LTAs with your suppliers just to ensure access to supply at pre-agreed prices? And, you know, when you approach product pricing in this environment, is it your intention to protect, you know, product gross profit dollars? Is it your intention to protect product gross margins? We’d just love the kind of thought process behind the pricing. And then I’d put follow-up, please. Thank you.
Cook: Yeah. On the pricing front, you know, we reluctantly raise prices, I would say. We did it because we’re in what I would characterize as a 100-year flood on the memory pricing. With exponential increases in memory prices, and so that was the that was the rationale for it. In terms of our philosophy on dollars or percentages, we look at units revenue and margin. And then come to a business judgment as to how to handle that. And so it’s not a mathematical formula that gets us to a specific result or just looking at one dimension of that. We look at all three dimensions and think about it over the long term. Instead of a, you know, a 90-day clock.
Q: And then just maybe a quick follow-up. I guess, Tim, or Kevin, just 12% services growth was just a bit below your guidance, I imagine, FX maybe played a role there.
I think the fiscal forecast guidance assumes, you know, another deceleration. I think the math would imply below 10% year-over-year as reported. So can you maybe just help us understand, you know, the kind of function factors underlying that deceleration? And if that’s App Store, which I think some third-party data sources would suggest, you know, is that a function of AI maybe reprioritizing time away from parts of the App Store? Just want to make sure we understand the moving pieces on services, please. Thank you so much.
Parekh: So let’s walk from kind of the 16% in our fiscal second quarter to kind of the 12% that we just talked about in the June quarter that you referenced. And we look at that, you know, relative to the March quarter, foreign exchange was the main driver for the change in the year-on-year growth rate sequentially. And also a couple of other factors to keep in mind. One is we had that the applicable release of F1, which is one of the highest grossing sports films in history, and this year we didn’t have it the applicable release. So that had a favorable impact on both the June quarter and also the September quarter and the year ago.
We also sort of had some factors that impacted the performance of the App Store. We did see some headwinds in mobile gaming. For the growth in categories like cloud. This is video, payment services, and advertising, and we set revenue records in every category with June quarter records in advertising and the app store, AppleCare, music, and video. We’re Apple TV, viewership reaching all-time high in the quarter. And then we also set all-time records in cloud services and payment services, where Apple Pay saw a record level of users in both developed and emerging markets.
And services also had a June quarter record in emerging markets, and we outlined in the prepared remarks our services continue to attract more customers, and we now have surpassed 1.5 billion in paid subscriptions, and our transacting and paid accounts hit an all-time high with double-digit growth in both those two and emerging markets.
So I think when I step back, if I look at kind of how we landed versus our expectations that we had outlined, in the March quarter, for the June quarter, I would say that our kind of we roughly met our expectations but we did see a bit more softness on mobile gaming in the app store.
As we go into the September quarter, what I would say is we expect foreign exchange will continue to be a headwind, and in fact, this is a theme that’s impacting the services business more so than a total company, we expect foreign exchange to drive about a 5 percentage point headwind to the year-on-year growth rate from the March to September quarter. So if we look at the sequential change in the June quarter, a 12% services we reported, to what we’re guiding for the September quarter, we are going to see another 2.5 point sequential headwind.
Q: I guess I want to maybe tether with the memory pricing dynamic, but as you look at the demand that you’re seeing right now, I’m curious of how you assess whether or not you’ve seen any pull forward of demand, either from the consumer or even the enterprise and education market, and whether or not you’re factoring that into your views as we look forward at all.
Cook: On you’re talking about on iPhone, I assume, in general, we’ve been running at this 22% growth rate for the last while, for this cycle has been a 22% increase year to date. And so it’s not obvious I would say that. It’s not obvious in the data that what you’re asking is true. Obviously, we’ve now had to increase prices on iPad and Mac, and the price elasticity there is just too early to come to a definitive conclusion of what happens there. Because it takes a little while for the channels to adjust since there’s channel inventory, and it takes a while for the consumer to respond. And so we’ll understand that more in the weeks ahead.
Q:A very helpful. And then as a quick follow-up, maybe more longer-term thematically, is AI proliferates towards the edge and more consumers utilize AI, I’m curious, Tim, if you see AI opening up additional opportunities. I can appreciate that you’re not going to give us specifics, but do you see other kind of addressable markets evolving from AI over time?
Cook: Yes. I think there are enormous opportunities for Apple moving forward in AI. And I’m so excited about Siri AI and kind of where it is and where it’s going, and I’m excited about the feedback that we’re getting there. And of course, the ability to run some percentage of requests on-device is also very strategic and sort of a competitive weapon, if you will. So I could not be more excited about the opportunities there.
Q: For my question, first on Siri AI, do you expect that Siri AI would change the capital intensity of Apple despite the fact that you have the ability to do so much differentiated workloads on-device and you have this distributed compute? You do have some requests that go into the backend, both in your own first-party cloud as well as third-party. So is it right to think that the capital intensity of Apple will change in the future because of Siri AI and Apple follow-up?
Cook: We use a hybrid model, as I know Kevin has reviewed. We reviewed earlier and so we use some third-party cloud and we do our own data centers. And so there will be a mix but generally speaking, as you know, we have been growing our op-ex and spending more in AI in general. And quite a bit more. And there are other locations on the P&L other than op-ex, like OCOGs and etc., that also have AI expenditures. And so we’ll see what Siri AI does from the cost side of it, but there’s also the ability when people use it a lot for them to move up on an iCloud plan as well. And so what the balance of that is, is a bit uncertain at the moment.
Q:And John, since you’re on the call, congrats on the new role. I’d love to get maybe just a high-level take from you if you think that the competitive landscape here is changing especially as you hear about potentially companies like OpenAI building an AI-enabled competitive device or SpaceX AI potentially having a phone. That would bypass some of the typical carrier tax. Just would love your high-level thoughts on how you see the competitive landscape evolving and Apple’s solution there.
Ternus:Well, thank you for asking. I guess I would just say reiterate what Tim said. There is so much opportunity for us with everything that’s happening in this space. And we’re just really focused on our plans and very excited about it.
Q: If I go back to WWDC when you announced Siri AI, you also did mention along with the rollout that probably we won’t have the initial rollout in China and Europe. So just wanted to get your updated thoughts on that front and any more color in terms of what hurdles you need to cross to be able to launch it in those regions and have a follow-up. Thank you.
Cook: Thanks for the question. Let me take them individually.
If you look at the EU, we’re working closely with the commission. Obviously, our complete desire is to launch everything, everywhere, at the same time. That’s always the philosophy that we have. We have not been able to do that in the European Union. But we’re working closely with them to try to get to something that would allow us to offer Siri AI there. It is offered or will be offered for the Mac there. Because the Mac is not covered by the same regulations as the iPhone and the iPad. So, we’re working with them and hope to reach some sort of solution.
If you then look at China, last week we received approval to ship sort of the original features of Apple Intelligence. Things like cleanup and so forth. And so we’re working now through the rollout of those and there will be more work required down the road for the Siri AI. But we’re at the front end of that.
Q: Okay. Great. And for my follow-up, Kevin, just not to beat sort of this FX thing to death here, but if I look at the gross margin, you delivered 48% in the quarter without the tariff refund benefit. You’re guiding to like 46 and a half. Any way to walk us through the sequential driver there and how much of that is FX impacting it versus maybe like increased commodity cost, etc., that’s driving that sequential quantitation? Because it does seem a bit more atypical than your normal sort of years.
Parekh: So let me walk through kind of what’s impacting our gross margins. We look at our gross margin change from the 49.3 we had total company level for the March quarter and as you mentioned, the 48.1 adjusted to the tariff refund in the June quarter. That 120 basis point change if you look at the drivers of that, more than 100% of that can be explained by the memory cost change that Tim outlined. While FX was a factor, really the main driver was really the memory cost impact. And as Tim outlined earlier, when we talked a bit about the dynamics around the memory cost, we did see some partial offsets from things like the benefit of carrying inventory, reduction in non-memory component costs, and some variable mix. We are seeing the same dynamics when you go from the 48.1 that we printed in the June quarter to the 46.5 midpoint you referenced of our range without the tariff refund impact.
That 160 basis point change is also more than that is explained by the change in memory. Costs. And we had some partial offsets again from things like the benefit of carrying inventory, lower cost non-memory components, and as well favorable mix. I think that FX was a pretty minimal impact when you look at that versus the memory. And so generally the sequential change from the March quarter to the 46 and a half you referenced is really driven by memory.
END OF CONFERENCE CALL
• AAPL After hours: $310.81, -22.62 (-6.78%) @ 6:01:06 PM EDT
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Apple reports blockbuster third quarter results
Apple today announced financial results for its fiscal 2026 third quarter ended June 27, 2026. The company posted quarterly revenue of $109.4 billion, up 16 percent year over year. Company gross margin was 50.1 percent, including a favorable impact of approximately 2 percentage points from tariff refunds. Diluted earnings per share was $2.02, up 29 percent year over year, and included a favorable impact of $0.11 from tariff refunds.
“Today, Apple is proud to report our strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services, and in every geographic segment,” said Tim Cook, Apple’s CEO, in a statement. “At WWDC26, we were thrilled to introduce the all-new Siri AI, alongside all of Apple’s latest software innovations and important new child safety features.”
“We are very pleased with our record business performance during the quarter, which set new June quarter records for both EPS and operating cash flow,” said Kevan Parekh, Apple’s CFO, in a statement. “Our installed base of active devices also reached a new all-time high across all major product categories and geographic segments.”
Net sales by category:
• iPhone: $54.252 billion (vs. $44.582 billion YoY)
• Mac: $10.352 billion (vs. $8.046 billion YoY)
• iPad: $6.191 billion (vs. $6.581 billion YoY)
• Wearables, Home, and Accessories: $7.883 billion (vs. $7.404 billion YoY)
• Services: $30.739 billion (vs. $27.423 billion YoY)
Apple’s board of directors has declared a cash dividend of $0.27 per share of the Company’s common stock. The dividend is payable on August 13, 2026, to shareholders of record as of the close of business on August 10, 2026.
Apple will provide live streaming of its Q3 2026 financial results conference call beginning at 2:00 p.m. PT on July 30, 2026, at apple.com/investor/earnings-call. The webcast will be available for replay for approximately two weeks thereafter.
Wall Street was looking for solid double-digit growth. Consensus forecasts (drawn from roughly 27–31 analysts) called for:
• Revenue of approximately $108.9 billion, up about 16% from $94.0 billion a year earlier.
• Diluted EPS of $1.89, up roughly 20% from $1.57 in the year-ago quarter.
MacDailyNews Take: A strong quarter, but the bears will say that Services delivered $30.7 billion versus projections of $31.3 billion and Greater China revenue was $18.8 billion, short of analyst estimates of $19.5 billion.
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Apple’s AirTag 2 four-pack hits record low of $89
Apple’s second-generation AirTag is currently available at its lowest price ever: $89 for a four-pack, down from the usual $99. The deal matches the previous all-time low first spotted during Amazon’s Prime Day event and remains one of the strongest discounts on the newer model.
A single AirTag 2 is also discounted to $27 (from $29). While that price isn’t quite as aggressive as some earlier promotions, it still ranks among the better current offers for buyers who only need one unit.
The AirTag 2 is a compact Bluetooth tracker that helps users locate everyday items like keys, wallets, bags, or luggage through Apple’s Find My network, showing the last known location on a map and enabling Lost Mode to lock the tag and display a custom contact message via NFC when found by someone else.
AirTag 2 offers Precision Finding with a second-generation Ultra Wideband chip that provides directional arrows, distance readouts, and haptic/audio cues from up to 50% farther away (on compatible iPhone 15 or later models, excluding certain variants), plus the first-time ability to use this feature on Apple Watch Series 9 or later and Ultra 2 or later; an upgraded Bluetooth chip for expanded proximity range; a 50% louder speaker with a distinctive new chime that can be heard from twice as far; “Left Behind” alerts; sharing location access with family or friends; temporary secure sharing with airlines for luggage recovery; a user-replaceable CR2032 battery lasting over a year; IP67 water and dust resistance; and built-in privacy protections including frequent Bluetooth ID rotation and end-to-end encryption so only the owner can access location data.
MacDailyNews Take: Get ’em while they last here.
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Daily usage of Siri among iPhone owners is currently 17%; that will change – Gene Munster
According to Gene Munster, an X poll indicated that only about 17% of U.S. iPhone users engage with Siri on a daily basis, a notably low figure given that the average iPhone is interacted with more than 100 times per day. At present, Siri is primarily used for low-stakes tasks and is not widely trusted as a full assistant.
Munster anticipates that this will begin to change over the next year. A new version — Siri AI — will become available in the U.S. late this year through an iOS 27 update. In beta testing conducted over the past 20 days, the feature was observed to be slow; however, this drawback was more than offset by an AI assistant that simply works effectively.
Ultimately, Munster believes that increased use of Siri (which is central to Apple’s personalized AI) will form the foundation of the value proposition for Apple devices.
Gene Munster via GeneMunster.com:
We ran a simple one-question poll on X asking, “How often do you use Siri?” The poll drew 1,750 votes. The raw results showed daily Siri use at a low 17%, with 39% reporting they never use it. As a daily Siri user, these numbers caught my attention, underscoring the degree of brand damage the feature has endured over the past decade.
• Daily: 17%
• Weekly: 7%
• Rarely: 37%
• Never: 39%
The comments were more telling than the poll. Across 64 replies, the message was clear and expected: Siri survives as a basic utility or shortcut, not an assistant…
My takeaway: Siri today is, on average, not trusted. It works for a narrow set of commands where the cost of failure is low.
The question is, once Siri gets overhauled, will the 83% of users who question its utility give it another try? I believe the answer is yes.
MacDailyNews Take: We fully agree with Gene.
Siri AI no longer just marketing. The rebuilt architecture works in real life — helping with souvenirs for the kids, prepping for your day, or analyzing your breakfast — while staying firmly within responsible boundaries.
The old Siri is gone. The new Siri AI has arrived in a very promising way – and it’s still just in beta. Our little birdies — who’ve been telling for months that the new Siri not only works, but is actually pretty great — knew what they were talking about! – MacDailyNews, June 20, 2026
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Granola AI notepad launches on Apple Watch, bringing one-tap meeting notes to your wrist
AI note-taking startup Granola has expanded its popular meeting notepad to the Apple Watch, letting users capture and transcribe conversations with a single tap—no phone or laptop required.
The new watchOS app, which launched on July 28, 2026, targets in-person and on-the-go discussions such as walking one-on-ones, whiteboard brainstorms, and casual coffee chats. Users can start recording via a dedicated app or a watch face complication. The screen turns bright Granola green and plays a sound to confirm it’s listening. When the conversation ends, a second tap stops the recording; the audio syncs to the paired iPhone, where Granola’s AI processes it into structured notes complete with highlights, decisions, and action items. Those notes then appear across the user’s iPhone, Mac, or Windows devices.
The company designed the experience around the idea that “the best wearable is the one you’re already wearing.” Co-founder Chris Pedregal noted that the goal is to let people stay present in face-to-face meetings without pulling a phone from their pocket. Internal testing showed that once employees had access to the Watch app, a substantial portion of their mobile Granola usage shifted from iPhone to wrist.
Granola can record offline on the Watch; a connection is needed only when the audio syncs and notes are generated. The app also surfaces subtle haptic reminders for upcoming calendar meetings and works seamlessly with the existing iOS, iPadOS, macOS, and Windows versions of Granola. It requires watchOS 11 or later and the latest Granola iPhone app. Installation is straightforward through the Watch app on iPhone if it doesn’t appear automatically.
The launch arrives as dedicated AI note-taking hardware (pins, pendants, and similar devices) has proliferated. Granola deliberately chose to build for an existing wearable rather than create new hardware. It also follows the company’s earlier unicorn milestone after a $125 million Series C led by Index Ventures.
To mark the release, Granola collaborated with London-based weaver Nowshin Prenon on a limited run of handwoven Apple Watch straps. The Watch app itself is free to download and use via the Granola iOS app.
With the Apple Watch increasingly positioned as an AI-friendly device, Granola’s arrival underscores growing interest in discreet, always-available capture tools that keep the focus on conversation rather than technology. Users can try it on their next in-person meeting simply by updating the iPhone app and installing the Watch companion.
MacDailyNews Take: More info about Granola for Apple Watch via Apple’s App Store here.
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Apple pledges support as wildfires ravage southern Europe
Apple’s outgoing CEO Tim Cook expressed solidarity with communities hit by the ongoing wildfires across southern Europe and confirmed the company will donate to on-the-ground relief efforts.
In a post on X late Wednesday, Cook wrote: “Our hearts go out to everyone affected by the devastating wildfires in southern Europe. Thank you to the first responders, and to everyone still in harm’s way, please stay safe. Apple will be donating to relief efforts on the ground.”
Our hearts go out to everyone affected by the devastating wildfires in southern Europe. Thank you to the first responders, and to everyone still in harm's way, please stay safe. Apple will be donating to relief efforts on the ground.
— Tim Cook (@tim_cook) July 30, 2026
The statement comes amid one of Europe’s most severe wildfire seasons in recent years. Intense heatwaves, dry vegetation, and strong winds have fueled major blazes in France, Spain, Greece, and other areas, burning hundreds of thousands of hectares, forcing hundreds of thousands of people to evacuate, and claiming lives including multiple firefighters.
In southwestern France, a large fire near Bordeaux has scorched around 42,000 hectares of pine forest, prompting the evacuation of roughly 220,000 residents and vacationers at its peak (with many later allowed to return as conditions eased somewhat). France has already recorded its highest wildfire-burned area in years, surpassing previous full-year totals with summer still underway.
Spain has faced its largest wildfire on record west of Madrid (in the Ávila region and surroundings), with total burned area across the country exceeding 200,000 hectares according to European data. Evacuations affected tens of thousands, and new outbreaks continued in provinces including Zamora, León, and Castellón.
In Greece, fires on Crete and elsewhere killed three firefighters and forced tourists and residents to flee, some by boat. Broader European Forest Fire Information System figures show far-above-average burned area and number of fires so far in 2026, driven by successive heatwaves that have left vegetation highly flammable.
Cook’s message follows Apple’s established pattern of offering financial support after major disasters without publicly disclosing exact donation amounts. Similar statements and aid have been issued after other recent crises.
MacDailyNews Note: As temperatures remain elevated and fire weather risks persist (particularly shifting eastward toward Italy and Greece in coming weeks) emergency crews continue battling the blazes while residents and responders face ongoing threats. Apple’s planned contribution aims to assist those recovery and relief operations already underway.
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Apple’s earnings report puts its AI safety premium to the test
Apple has emerged as Wall Street’s preferred Big Tech refuge this year as investors grow wary of heavy artificial intelligence spending by rivals. The company’s fiscal third quarter results, due after the market close on Thursday, will show whether that status can endure.
According to Bloomberg News’ Ryan Vlastelica, Apple’s shares have surged 17% in July and are on track for their strongest monthly performance in four years. The stock has climbed 24% in 2026, far outpacing the rest of the Magnificent Seven technology giants. Apple has also repeatedly crossed a $5 trillion market capitalization in recent sessions, reclaiming the title of the world’s most valuable publicly traded company and joining Nvidia Corp. as the only firms to reach that milestone.
The rally reflects a broader shift. Investors have rotated away from companies pouring tens or hundreds of billions of dollars into AI data centers and infrastructure, favoring Apple’s more restrained approach. The company has kept capital expenditures relatively modest (far below the outlays of peers such as Microsoft, Meta, Alphabet, and Amazon) while still integrating AI features, often by partnering with others including Google for underlying technology. That stance has positioned Apple as a lower-risk “AI safety play” with strong cash flow, substantial buybacks and pricing power.
Yet Thursday’s report, to be released after the closing bell, could highlight remaining challenges. Analysts will scrutinize iPhone demand following the iPhone 17 cycle, the impact of elevated memory chip costs on margins, the sustainability of a rebound in China, and any updates on Apple Intelligence and a more capable Siri. Consensus expectations call for revenue of roughly $109 billion and earnings per share near $1.89. The call will also mark Tim Cook’s final earnings appearance as chief executive before John Ternus assumes the role on September 1.
As Vlastelica noted in coverage of AAPL stock’s recent strength, the same caution that has made Apple a market leader this year also leaves it playing catch-up on advanced AI capabilities. Strong results and confident guidance could reinforce the safety narrative; any signs of slower hardware momentum or lingering AI execution gaps risk testing investors’ newfound enthusiasm.
MacDailyNews Take: As always, it’s Apple’s guidance that will drive the stock after its earning report.
MacDailyNews Note: As usual, we’ll have Apple’s earnings results for you as soon as they are released on Thursday, July 30th right around 4:30pm EDT / 1:30pm PDT. We’ll follow that with live notes from Apple’s conference call with analysts starting at 5:00pm EDT / 2:00pm PDT.
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Berkshire Hathaway still holds $60 billion in Apple shares — and the stake keeps quietly growing
Despite heavy – and rather ill-timed – selling that reduced Berkshire Hathaway’s Apple position and sparked talk of a shift under new CEO Greg Abel, the tech giant remains the conglomerate’s largest equity holding by far. At roughly 228 million shares worth about $60 billion (around 22% of the stock portfolio), Apple continues to deliver dividends, massive unrealized gains, and a subtle ownership boost from the company’s relentless share buybacks—showing the trim was about risk management, not a loss of conviction.
Micah Zimmerman for The Motley Fool:
Berkshire also sits on an enormous unrealized gain, since Berkshire’s cost basis is a fraction of today’s price, and the shares throws off a steady stream of dividends every year. Whatever the trimming implied, Apple is not a relic in this portfolio. It is the foundation.
Here’s the part that caught my eye. Apple spends tens of billions of dollars a year buying back its own stock, steadily shrinking the number of shares in circulation. That matters for Berkshire in a subtle but powerful way. Because the total share count keeps falling, Berkshire’s ownership percentage of Apple slowly rises even though it hasn’t bought a single new share. Its claim on Apple’s future profits quietly grows on autopilot.
Buffett has praised exactly this dynamic for years, calling it one of the reasons he loved the investment. He once compared it to your ownership of a business rising simply because your partners keep buying each other out. It means Apple keeps working for Berkshire in the background, compounding its stake without any action at all.
It is tempting to read the share sales as Berkshire’s loss of faith. I would read them differently. Apple’s position had grown so large that, at one point, it was worth more than everything else in the equity portfolio combined, a level of concentration that made even [Warren] Buffett uncomfortable. Trimming was about managing risk and locking in enormous gains at a rich valuation, not abandoning the thesis. Choosing to keep roughly $60 billion in Apple, rather than exiting entirely, is a statement of enduring conviction under Abel, not a goodbye.
MacDailyNews Take: The two most beautiful words in the English language: passive income.
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Qualcomm forecasts weak quarterly profit, sees faster drop in Apple revenue
Qualcomm forecast fourth-quarter profit below Wall Street estimates on Wednesday and said revenue from Apple products would decline faster than expected as supply constraints and rising costs weighed on its business.
In an interview with Reuters, CEO Cristiano Amon said costs had risen not just for memory chips, but across the supply chain. Qualcomm plans to raise prices starting September 1 in an effort to return its margins to historical levels, he said.“We’re just passing through big cost increases that we have,” Amon said, noting that Qualcomm will have to negotiate with each customer. “The temporary disconnect between cost and pricing causes a slight decline temporarily in gross margin.”
Qualcomm also said it expects revenue from Apple products to decline more quickly starting in the fourth quarter as supply constraints reduce its share of components used in the next iPhone launch to well below its earlier estimate of 20%.
“It’s availability of supply,” Amon told Reuters of the Apple share change.For fiscal 2027, the company expects the majority of its chip sales will come from categories other than smartphones.
“We kind of replaced Apple with the data center,” Amon said.Qualcomm expects adjusted profit to be between $2.05 and $2.25 per share in the fourth quarter, below analysts’ average estimate of $2.36, according to data compiled by LSEG. It forecast revenue of between $9.7 billion and $10.5 billion during the period, compared with estimates of $10.02 billion.
Revenue in its chip segment is expected to be between $8.4 billion and $9 billion, while analysts were expecting $8.49 billion.
Qualcomm reiterated that revenue from Chinese phone makers bottomed out in the third quarter as customers worked through excess inventory. Xiaomi, Oppo, and Vivo posted the steepest shipment declines among the top five global smartphone vendors in the June quarter, according to Counterpoint Research.
While unit sales of Android phones began to recover, Amon said handset makers were forced to raise prices, which in turn prompted buyers to look toward the bottom end of the premium phone segment, or even at older models, both of which hurt Qualcomm margins.“There was a mix change versus what we expected,” Amon said.
Qualcomm’s broad exposure to devices such as smartphones makes its results a closely watched indicator of demand trends across consumer electronics.
MacDailyNews Note: Its third-quarter revenue fell 4% to $9.95 billion, beating estimates of $9.67 billion. Adjusted profit came in at $2.21 per share, compared with estimates of $2.23.
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Tim Cook and John Ternus discuss CEO transition and Apple TV’s legacy and future
Apple’s Tim Cook and incoming CEO John Ternus stepped onto the red carpet together at the Ted Lasso Season 4 premiere, matching in navy suits and “Believe” pins while reflecting on a smooth leadership handoff and the bright future of Apple TV.
In a joint interview with Deadline, Cook expressed excitement over Apple TV’s record 89 Emmy nominations, while Ternus shared his enthusiasm for the show’s return and the momentum behind Apple’s content slate.
Nellie Andreeva for Deadline:
“We’ve been at it for seven years, and it feels like every year is better than the year before,” Cook said. “Now we’ve really hit our stride, and I couldn’t be more excited about where we’re going. We have 89 Emmy nominations, we’re so excited. I hope you’re watching Widow’s Bay, it’s a terrific show, and now tonight to bring Ted Lasso back, it’s marvelous.”
Cook announced his pending departure as CEO in April.
Turns out Ternus is a Ted Lasso fan too.
“I love Ted Lasso, I am so excited to have all the characters back, to have the story back,” he said. “It’s just such an amazing story, such an amazing message of optimism and hope and believe.”
As Ternus prepares to lead Apple, what ideas does he have for the company’s streaming service? Is he planning to make some changes? As a big racing fan, adding more racing, perhaps, to Apple TV’s Formula 1 coverage?
“I am just so excited about the momentum we have,” he said. “There’s so much great content on Apple TV, and now is just the perfect time for us to keep the momentum up, keep bringing in incredible storytellers and creative folks to keep making it better.”
“This year’s been amazing with Pluribus and Widows Bay. Right now, I’m watching Silo and Lucky,” Ternus said.
Added Cook, “I love Severance, I can’t wait for it to come back. I’m watching Widow’s Bay, as I mentioned. I love Pluribus. Silo is fantastic,” Cook said.
MacDailyNews Note: Apple TV is available on the Apple TV app in over 100 countries and regions, on over 1 billion screens, including iPhone, iPad, Apple TV 4K, Apple Vision Pro, Mac, popular smart TVs from Samsung, LG, Sony, VIZIO, TCL and others, Roku and Amazon Fire TV devices, Chromecast with Google TV, PlayStation and Xbox gaming consoles, and at tv.apple.com, for $12.99 per month with a seven-day free trial for new subscribers. For a limited time, customers who purchase and activate a new iPhone, iPad, Apple TV 4K or Mac can enjoy three months of Apple TV for free.
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Apple TV announces ‘Silo’ season 4 is coming summer 2027
Apple TV has officially confirmed that the fourth and final season of its acclaimed dystopian sci-fi series “Silo” will premiere in summer 2027. The announcement came during the streamer’s panel at San Diego Comic-Con over the weekend, giving fans a clear timeline for the conclusion of the story adapted from Hugh Howey’s bestselling trilogy.
The official word arrived via Apple TV’s X account on July 25, 2026, The post includes a promotional video teasing the end of the saga:
The end is near.
The fourth and final season of #Silo premieres summer 2027. pic.twitter.com/j4vhyf27xM
— Apple TV (@AppleTV) July 25, 2026
“Silo” follows the last remnants of humanity living in a massive underground bunker, protected from a toxic outside world they barely understand. Starring and executive produced by Rebecca Ferguson as engineer Juliette Nichols, the series has built a dedicated following with its tense mysteries, intricate world-building, and strong ensemble cast that includes Common, Tim Robbins, Harriet Walter, and others.
Season 3, which premiered on July 3, 2026, is currently airing weekly on Apple TV, with new episodes dropping every Friday through September 4th. That season expands the story with an origin narrative set centuries earlier while advancing the present-day plot.
Importantly, Seasons 3 and 4 were filmed largely back-to-back after Apple renewed the show for both installments in late 2024. Production on the final season wrapped earlier this year. Season 4 is expected to adapt the concluding novel Dust, wrapping up the major unanswered questions about the silos and humanity’s fate.
Showrunner Graham Yost has emphasized the value of knowing the full arc in advance, allowing the creative team to deliver a satisfying conclusion without the uncertainty that often plagues streaming series. With Season 3 still unfolding and Season 4 locked in for next summer, the wait between the final two chapters will be relatively short by modern prestige TV standards.
Fans can continue catching up on or following Season 3 on Apple TV right now. The series has earned strong critical praise across its run for its thoughtful exploration of power, truth, and survival in a closed society. When Season 4 arrives in summer 2027, it will mark the definitive end of the “Silo” series, and the larger story of the silos.
MacDailyNews Take: Here’s to timely annual streaming TV seasons!
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What’s new in tvOS 26.6 and HomePod 26.6
Apple released tvOS 26.6 and HomePod Software 26.6 on July 27, 2026, as part of a broader wave of point updates that also included iOS 26.6, iPadOS 26.6, macOS Tahoe 26.6, watchOS 26.6, and visionOS 26.6.
These are maintenance releases rather than feature-packed upgrades. With the major tvOS 27 and HomePod Software 27 updates already in beta and expected in the fall, Apple focused the 26.6 cycle on under-the-hood refinements: bug fixes, performance and stability improvements, and a substantial set of security patches. No significant new user-facing features were identified during the beta period for either platform.
tvOS 26.6
tvOS 26.6 is available for the Apple TV HD and all Apple TV 4K models. It arrives roughly two months after tvOS 26.5 and continues the pattern of incremental polish for the 26 series, which introduced the Liquid Glass design language and other enhancements in fall 2025.
Apple’s developer release notes highlight only a small number of resolved issues (such as specific HealthKit statistics query problems and StoreKit testing behavior in the simulator). The public-facing emphasis is on general reliability and security. The security content document lists dozens of fixes across frameworks including Accounts, App Store, Kernel, CoreAudio, ImageIO, and others—addressing potential issues like user fingerprinting, data access, denial-of-service conditions, and memory corruption.
Notably, tvOS 27 is expected to drop support for the Apple TV HD and the first-generation Apple TV 4K. Owners of those models will remain on the tvOS 26.x line (including future minor updates after 26.6) for as long as Apple continues to support them.
How to update:
On your Apple TV, open Settings > System > Software Update. Devices with automatic updates enabled should receive it without manual intervention.
HomePod Software 26.6
HomePod Software 26.6 (build 23L773) rolls out to the original HomePod, HomePod mini, and later models. Like the concurrent tvOS release, it carries no new headline features. Apple has not published detailed public release notes beyond the standard language of performance and stability improvements, which has been typical for most 26.x point releases after the initial HomePod Software 26 launch (that version added Crossfade for Apple Music and AirPlay refinements).
The update shares the same late-cycle focus on reliability and security hardening as the rest of the 26.6 family. It is installed automatically on most HomePods unless the feature has been disabled; manual installation is available through the Home app on iPhone, iPad, or Mac (Home Settings > Software Update).
These releases represent the late-stage maintenance phase of the 26-generation operating systems. Engineering attention has largely shifted to the 27 series unveiled at WWDC 2026, which is currently in public beta and slated for a fall launch. That upcoming generation is expected to bring more substantial changes, including further Siri and Apple Intelligence integration (particularly relevant for future HomePod and Apple TV hardware) and other refinements.
MacDailyNews Take: Both tvOS 26.6 and HomePod Software 26.6 deliver a quieter, but useful round of fixes and security updates. Installing them keeps your Apple TV and HomePod devices running smoothly and better protected while the bigger fall upgrades take shape.
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What Wall Street expects from Apple’s Q3 earnings on Thursday
Apple is scheduled to report fiscal third-quarter 2026 results (the June quarter) after the market close on Thursday, July 30th, followed by its usual conference call. The release carries extra weight: it is expected to be Tim Cook’s final earnings call as CEO before hardware engineering chief John Ternus assumes the role on September 1, with Cook moving to executive chairman.
Consensus Estimates
Wall Street is looking for solid double-digit growth. Consensus forecasts (drawn from roughly 27–31 analysts) call for:
• Revenue of approximately $108.9 billion, up about 16% from $94.0 billion a year earlier.
• Diluted EPS of $1.89, up roughly 20% from $1.57 in the year-ago quarter.
These figures sit comfortably inside management’s prior guidance of 14–17% year-over-year revenue growth and a gross margin range of 47.5–48.5% (down from 49.3% in the March quarter as higher memory costs begin to weigh). Operating expenses are expected in the $18.8–$19.1 billion range.
Zacks consensus is nearly identical at $108.8 billion in sales and $1.88 EPS. Apple has beaten estimates in recent quarters, with an average earnings surprise of more than 7% over the past four reports.
Segment Expectations
• iPhone remains the primary driver. Analysts project iPhone revenue near $53 billion (some estimates range $53–$55 billion), representing roughly 19–23% growth from $44.6 billion last year, fueled by the iPhone 17 cycle, healthy upgrade activity, share gains, and a richer mix of higher-priced Pro models.
• Services, Apple’s high-margin growth engine, is expected around $31.4 billion, up from $27.4 billion a year earlier (mid-teens percentage growth). Investors will watch for any commentary on Apple Intelligence adoption and subscription momentum.
• Mac, iPad, and Wearables are expected to contribute more modestly, with some notes of supply constraints on certain Mac models.
Analyst Views
Several firms are slightly ahead of consensus. Goldman Sachs expects revenue of $110.1 billion (17% growth) and EPS of $1.93, citing outperformance in iPhone and Mac plus better margins; the firm raised its price target to $370. Bank of America models about $109 billion in revenue and $1.89 EPS. UBS is more cautious at $107.8 billion revenue and $1.84 EPS.
Key focus areas on the call are expected to include:
• Sustainability of iPhone demand into the September quarter and the upcoming product cycle.
• Gross-margin trajectory amid elevated DRAM and NAND costs.
• Progress on AI features (including the recent clearance for Apple Intelligence in Greater China) and any early metrics on usage or monetization.
• Forward guidance, especially for the September quarter, and any color on the leadership transition.
• Capital return, inventory levels, and China trends.
Apple stock has rallied strongly in 2026 (up roughly 24% year-to-date in some tallies), leaving the shares trading at a premium valuation — near 35–38 times forward earnings by some measures. That leaves limited room for disappointment. A clean beat paired with confident guidance on continued double-digit growth and stable margins would likely be well received; any soft outlook or sharper-than-expected margin pressure could prompt a more cautious reaction.
MacDailyNews Take: In a nutshell, analysts expect another strong quarter driven by iPhone and Services, but the real test will be whether Apple can sustain the momentum while navigating higher component costs as new CEO John Ternus, blessedly a product guy per se, prepares to take the reins. Apple Upgrade should help in this respect.
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Apple-led foreign phone shipments in China jump 66% in June as overall market shrinks
Shipments of foreign-branded smartphones in China, overwhelmingly dominated by Apple’s iPhones, surged 66.3% year-on-year to 3.28 million units in June, according to Reuters calculations based on data from the China Academy of Information and Communications Technology (CAICT).
Apple is by far the largest foreign brand in the Chinese market, routinely accounting for the bulk of non-domestic shipments. Other foreign makers, such as Samsung, hold only a negligible share. As a result, the CAICT’s “foreign-branded” category is widely viewed by analysts as a close proxy for iPhone performance.
The sharp rebound for foreign (mainly Apple) devices came even as the broader Chinese smartphone market continued to contract. Total phone shipments within China fell 15.3% from a year earlier to 19.15 million handsets in June, the government-affiliated research body reported on Wednesday.
The figures underscore a clear divergence in the world’s largest smartphone market. While overall demand remains soft amid economic pressures and longer upgrade cycles, Apple has been gaining ground relative to many domestic Android rivals. In the second quarter of 2026, Apple was one of only two major brands (alongside Huawei) to post shipment growth, lifting its market share to roughly 18%.
CAICT’s monthly data is closely tracked as an early signal of consumer demand and brand momentum in China. The June results suggest that premium foreign devices, led by Apple’s iPhone, continue to outperform the wider market even as total volumes stay under pressure.
MacDailyNews Take: We can hardly wait for Apple to release its June quarter earnings results tomorrow!
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