Apple released quarterly results that exceeded expectations, fueled by robust iPhone sales. However, the company’s revenue forecast for the upcoming quarter did not meet Wall Street’s projections, as it continues to face component shortages and increasing costs, especially in memory semiconductors.
Apple reported on July 30 (local time) that its revenue for the third quarter of the fiscal year (April–June 2026) amounted to 109.42 billion dollars (about 152 trillion Korean won), reflecting a 16.4% rise compared to the previous year.
The outcomes exceeded market predictions. The Wall Street projection gathered by financial data company London Stock Exchange Group, LSEG, stood at 108.65 billion dollars. Realized revenue surpassed forecasts by roughly 770 million dollars. Earnings per share (EPS) reached 2.02 dollars, surpassing the anticipated 1.89 dollars. Both income and profit levels were higher than expected.
Apple saw revenue increase by double digits even with rising expenses, such as increased prices for memory semiconductors. This outcome is due to its high-end product sales model and service offerings, which helped maintain performance despite a slowdown in global smartphone market expansion.
Thomas Monteiro, a senior analyst with Investing.com, stated to the Associated Press, “Apple showed robust cash flow generation despite major tech firms investing heavily in AI. Nevertheless, increasing memory costs may affect profitability in the future.”
The forecast for the upcoming quarter did not meet expectations. In a conference call after the earnings announcement, Apple predicted a 7–9% increase in revenue for the fiscal fourth quarter (July–September), which is lower than the over 12% growth rate expected by Wall Street.
Apple stated, “Shortages of components are limiting revenue expansion.” Rising demand for essential parts, such as memory semiconductors because of higher investments in AI data centers, has caused prices to rise and made obtaining adequate supply difficult. Although Apple exceeded market forecasts for the third quarter, worries about slower future growth resulted in a drop in Apple’s stock price during after-hours trading.
Apple has considered obtaining products from Chinese vendors to tackle memory shortages resulting from increased demand for AI semiconductors. Nevertheless, resistance from the U.S. Congress against utilizing Chinese memory suppliers has made it more challenging to expand sourcing options.
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