[New York = E-Daily Seong Joowon Correspondent] Apple reported quarterly earnings that exceeded market expectations, driven by strong sales of iPhones and Macs. However, as the services segment fell short of expectations, the stock price is down more than 4% in after-hours trading.

Apple announced on the 30th (local time) that revenue for the third quarter of fiscal year 2026 (April–June) totaled $109.42 billion (approximately 155.9235 trillion won). This exceeded market expectations of $108.65 billion (based on LSEG data).
Earnings per share (EPS) came in at $2.02, exceeding the forecast of $1.89. Of this amount, 11 cents reflected a tariff refund from the U.S. government.
Net income rose to $29.79 billion, up from $24.43 billion a year ago (EPS of $1.57).

iPhone and Mac Drive Earnings… Services Underperform

By segment, iPhone revenue reached $54.25 billion, up approximately 22% year-over-year and exceeding the forecast of $53.86 billion. This marks the highest-ever iPhone revenue for a third quarter. Mac revenue surged approximately 29% year-over-year to $10.35 billion, significantly surpassing expectations.
In contrast, services revenue came in at $30.74 billion, up 12.1% year-over-year but falling short of expectations. iPad revenue was $6.19 billion, down 5.9% year-over-year and below the forecast of $6.92 billion. Wearables revenue was $7.88 billion, in line with the forecast of $7.82 billion.
Revenue in Greater China was $18.82 billion, a 22.4% increase year-over-year. However, it fell short of the market forecast of $19.58 billion cited by Bloomberg.
The gross margin was reported at 50.1%. Apple explained that approximately 2 percentage points of this were attributable to tariff refunds. Excluding the tariff refunds, the gross margin was 48.1%, which also exceeded market expectations (47.92%). Anurag Rana, an analyst at Bernstein (BI), assessed the gross profit margin, stating, “While it was somewhat weak in Greater China, it was solid overall.” Apple Chief Financial Officer (CFO) Keven Parekh noted in the earnings release, “Both EPS and operating cash flow set new records for the June quarter this quarter.”

“A once-in-a-century flood”… Price hikes imminent amid memory

chip

crisis

Underlying these earnings is a global shortage of memory semiconductors. CEO Tim Cook recently likened this situation to

a “once-in-a-century flood.”

In an interview with Reuters, CEO Cook cited the shortage of advanced semiconductor manufacturing technology used in the production of Apple Silicon chips as the primary supply constraint in the third quarter, stating, “While we are experiencing a product cycle that is stronger than we anticipated, the (advanced semiconductor) supply chain fundamentally lacks the flexibility to handle such high demand.”
As a result, Apple has already raised prices on some Mac and iPad models by up to 25%. Although iPhone prices have not yet increased, many Wall Street analysts expect them to rise when new models are launched this September.
The memory shortage is not unrelated to the domestic semiconductor industry. Reuters noted that while Apple’s Chinese competitors are facing production difficulties due to a shortage of memory chips, SamsungElectronics(005930)is in a relatively advantageous position in terms of securing supplies because it has its own memory business.

Cook’s Final

Earnings Report

… New Siri to Face the Test in September

This earnings report marks the final quarterly results CEO Cook will present in his role as chief executive. Apple announced last April that John Turners, head of hardware, would succeed Cook. Turners, who has been with Apple for 25 years, did not make any significant remarks during the previous earnings conference call, so investor attention is expected to focus on him during this call.
Apple plans to unveil a redesigned Siri—built using Google technology—alongside new iPhone hardware in September. Amid concerns that Apple has fallen behind in the artificial intelligence (AI) race, this new version of Siri is expected to serve as a crucial test of Apple’s AI capabilities.
Market reaction on the day was mixed. In after-hours trading immediately following the earnings announcement, Apple’s stock price fell by about 2%, but as the decline widened, it is now down by around 4% compared to its regular-session closing price ($333.43).