Apple Reports Record Quarter as iPhone and Mac Sales Soar

Apple reported one of its strongest financial quarters to date, posting $109 billion in revenue and nearly $30 billion in net income for the third quarter of 2026. During what was his final earnings call as CEO, Tim Cook highlighted exceptional demand for the company’s iPhone and Mac lineup while acknowledging that ongoing memory chip shortages could continue to put pressure on future pricing.

The earnings call also marked the end of Cook’s 15-year tenure as Apple CEO ahead of leadership changes later this year.

iPhone and Mac Lead Strong Growth

Apple’s flagship product categories delivered impressive results during the quarter.

Revenue by product segment included:

• iPhone: $54 billion (up 22% year over year)
• Mac: $10 billion
• iPad: $6 billion
• Wearables, Home and Accessories: Nearly $8 billion
• Services: $31 billion

Cook attributed the strong performance to exceptionally high demand for Apple’s latest hardware, particularly the iPhone lineup and the entry-level MacBook Neo, which helped drive Mac sales.

Memory Shortage Continues to Impact Pricing

Despite the record results, much of the discussion centered on rising component costs caused by the global memory chip shortage.

Apple previously increased prices on several products as higher memory costs affected manufacturing expenses.

Cook said the decision was unavoidable, describing the situation as an unprecedented surge in memory pricing.

According to Apple, rapidly growing demand from artificial intelligence infrastructure has significantly increased memory costs across the technology industry.

More Price Changes Remain Possible

Apple has not confirmed whether additional price increases are coming, but Cook acknowledged that memory prices are expected to remain elevated over the coming months.

The company says it is continuing to evaluate its options while taking a long-term approach rather than focusing solely on short-term financial performance.

Cook declined to provide specific details on future pricing, describing the outlook as uncertain.

Leadership Transition Begins

The earnings call also served as Tim Cook’s final appearance as Apple’s chief executive before stepping down after 15 years in the role.

Cook used the opportunity to thank employees, customers, and investors while expressing confidence in incoming CEO John Ternus, who is scheduled to assume leadership on September 1.

He praised Ternus and Apple’s executive team, saying he believes the company remains well positioned for continued innovation and long-term growth.

Record Results Despite Industry Challenges

Although supply chain constraints and rising memory costs continue to affect the broader technology industry, Apple’s latest financial results demonstrate sustained demand for its products.

With strong iPhone sales, continued Mac growth, and expanding services revenue, Apple enters its next leadership chapter from a position of financial strength, even as uncertainty remains over future component costs and potential pricing adjustments.