Apple Posts Record Q3 Earnings as iPhone 18 Price Rumors Swirl
The earnings call confirmed that memory price increases are already forcing Apple to raise prices on some products, and the market rumor of a $200 price hike for the iPhone 18 Pro suggests the cost of accessing Apple Intelligence could rise significantly, a concern that goes beyond the usual quarterly numbers.
Key Facts
- Apple's Q3 fiscal 2026 revenue was $109.417 billion, up 16% year-over-year, with net profit of $29.789 billion, up 27%.
- iPhone revenue rose 22% to $54.252 billion, Mac revenue rose 29% to $10.352 billion, and services revenue rose 12% to $30.739 billion.
- iPad revenue declined 6% to $6.191 billion, while wearables revenue rose 6% to $7.883 billion.
- Apple's stock fell in after-hours trading after its July-September revenue forecast missed market expectations.
- Apple raised iPhone prices in some regions, including Japan, in July 2026, and CEO Tim Cook said memory costs are expected to rise further.
Reporting from 2 sources: ASCII.jp, GIGAZINE.
Apple reported its third-quarter fiscal 2026 earnings on July 30, with revenue of $109.417 billion, up 16% year-over-year, and net profit of $29.789 billion, up 27%, a record for the April-June period. iPhone sales drove the growth, rising 22% to $54.252 billion, while Mac revenue climbed 29% to $10.352 billion and services, including the App Store and iCloud, grew 12% to $30.739 billion, both also setting records for the quarter. iPad sales fell 6% to $6.191 billion, and the wearables segment, which includes Apple Watch and AirPods, rose 6% to $7.883 billion. Revenue increased year-over-year in all regions, including the Americas, Europe, China, and Japan. CEO Tim Cook said the company saw double-digit growth in iPhone, Mac, and services, and revenue growth in every geographic segment. The active installed base of devices also reached all-time highs across all major product categories and regions, according to CFO Kevan Parekh. Despite the strong results, Apple's stock fell in after-hours trading after its July-September revenue forecast missed market expectations. The company also faces rising memory costs, which Cook said are expected to increase further, potentially impacting the business in September and beyond.
- R&D spending hit a record $11.73 billion in the quarter, according to 9to5Mac.
- Paid subscriptions, including Apple Care+ and Apple One, surpassed 1.5 billion, per Apple.
- Mac growth was driven by the entry-level MacBook Neo, announced in March 2026 with a 13-inch display and A18 Pro chip, priced at 99,800 yen including tax.
- China, Apple's third-largest market, brought in $18.82 billion, up 22% year-over-year.
- Apple raised prices for Mac and iPad in June 2026, and for iPhone in some regions including Japan in July 2026.
- Cook called the situation of not raising iPhone prices in most regions difficult and "not good for consumers."
- He said memory supply constraints should be offset by existing inventory and cost cuts in non-memory components, but "looking ahead to September and beyond, we expect memory market prices to continue to rise, so it is quite possible that this will have an increasingly significant impact on our business."
- Apple's July-September revenue forecast fell short of market expectations, and the stock dropped in after-hours trading.
- On the rumored $200 iPhone 18 Pro price increase, ASCII.jp notes that depending on exchange rates the device could cost around 200,000 yen, which may push some users toward used devices or the newly launched U.S. "Apple Upgrade" leasing program.
Synthesized by Yomimono from the 2 cited sources below, including Japanese-language reporting where cited, then editorially reviewed before publishing.