Apple reported a 22% year-on-year increase in iPhone revenue to $54.25 billion for the third quarter ending June 2026, driving strong overall results [1, 2]. Total quarterly revenue rose 16% to $109.42 billion, exceeding analyst expectations despite challenges [1, 2, 3].
Mac revenue grew 29% in Q3 due to robust sales of new MacBook Neo and MacBook Pro models, providing a significant boost amid supply difficulties [1, 4, 5, 6]. However, Apple faced notable supply chain constraints, particularly in advanced chipmaking and memory components, limiting product availability [7, 4, 5, 6]. CEO Tim Cook said, "We’re seeing some very significant (supply) constraints currently with limited flexibility in the supply chain to remedy it" [4].
Memory prices surged in June 2026, a phenomenon Cook described as a "hundred-year flood," prompting Apple to raise prices on Mac and iPad products [6, 8]. Despite this, iPhone prices have not yet increased, though Apple is considering possible hikes amid ongoing cost pressures [1, 7, 8]. Analysts disagree on the likelihood of iPhone price raises at the September launch of the iPhone 18, with some expecting increases while others see uncertainty [1, 7, 8].
Apple has been stockpiling inventory to navigate the supply disruptions, reporting an $11.1 billion inventory at the end of Q3, nearly double from the previous September [6]. Meanwhile, services revenue declined slightly, failing to meet analyst hopes for growth [1, 2].
Looking ahead, Apple's CFO forecasted year-on-year revenue growth of 9 to 11% for the next quarter, below Wall Street’s 12% estimate, with iPhone revenue expected to grow in the mid-teens percentage range versus a 17.6% target [4, 5, 6]. Cook noted the company considers multiple factors beyond gross margin when adjusting prices, including sales volume and market conditions [8]. He also said, "Apple expects memory costs to continue rising going into the next quarter and beyond" [1].
Apple will hold its CEO transition in September 2026, when Tim Cook steps down and John Ternus takes over the role [1, 6, 3]. The company also plans to launch the iPhone 18 lineup that month, with pricing decisions still uncertain amid the memory cost environment [7, 8].
