Apple News 3 Days

Last updated: July 31, 2026, 8:30 AM ET

Apple's Financial Performance and Future Outlook

Apple's CFO reported that regulatory changes to the App Store have begun to affect Services growth felt the impact. Softness in mobile gaming and these App Store changes also impacted Services revenue affected performance. Despite these headwinds, Apple reached a milestone of 1.5 billion paid subscriptions across its platform, with the high-end Apple One tier becoming more compelling in iOS 27. The company also reported a record $11.73 billion in research and development expenses for Q3 2026 climbed to a record. Apple announced a quarterly cash dividend of $0.27 per share to be paid on August 13. Tariff refunds helped bolster Apple's gross margins and earnings per share in the June quarter, with another $1 billion in refunds still unaccounted for. Goldman Sachs raised its AAPL price target to $370, anticipating strong third-quarter results and continued purchase volumes despite hardware price increases, though JP Morgan lowered its target to $340 due to supply constraint worries, while remaining bullish long-term. Apple's valuation touched $5 trillion, driven by record iPhone revenue and a rebound in China.

iPhone and Supply Chain Challenges

Apple warned that supply constraints will increase "significantly" in the next quarter. Strong demand for the iPhone in September will not be met by supply, which is expected to slow growth. Apple anticipates supply constraints will have a larger impact on revenue in the September quarter, affecting the iPhone, iPad, and Mac. Tim Cook noted that adding more memory suppliers may not necessarily lead to lower product prices, citing a "100-year flood on memory pricing" as the reason for reluctant price increases. The iPhone 18 Pro is rumored to transition away from Qualcomm modems to an Apple-designed C2 chip. The 20th anniversary iPhone, expected in fall 2027, may feature its most significant redesign since the iPhone X.

Software and Services Updates

mac OS, also known as Golden Gate, is set to bring significant upgrades, including improvements to iPhone Mirroring. iOS 27 will introduce new features for Apple Notes, and will unlink alarm volume from the iPhone ringer. Users will also gain the ability to hide the Messages button that is often accidentally pressed, and Apple Maps will enhance its "Suggested Places" feature. Siri AI in iOS 27 is expected to be a major upgrade, with one notable area where it differs from other AI assistants for the better. Apple is planning paid iCloud+ upgrades for users with heavy AI usage, tying daily usage limits to subscription tiers. The App Store and iTunes Store experienced downtime for some users, though issues have since been resolved experienced downtime.

New Hardware and Ecosystem Expansions

Apple is reportedly preparing to launch an all-new smart home hub between October and early next year. New models of the Apple TV and Home Pod mini are also "nearly ready to launch" this fall. The company is also expected to release three new smart home products. Car Keys support is expanding to another brand from the GWM automaker. Apple Wallet support is coming to Manchester's Bee Card. The U.S. Department of Justice is contesting Apple's request for records from 14 federal agencies in its antitrust case. The FCC has banned new foreign-made robotic devices, which could impact future Matter and HomeKit models.

Tim Cook's Departure and Leadership Transition

Tim Cook confirmed that his most recent earnings call was his last as CEO, with John Ternus set to take over as CEO on September 1. Cook thanked shareholders on his final call, and will transition to an advisor role. John Ternus is being presented as a continuation of Tim Cook's leadership approach, with no major reset expected. Apple TV's future is considered safe under Ternus, despite potential annual losses of $1 billion.

AI and Developer Ecosystem

Apple's AI compute costs are expected to be covered by iCloud+ subscriptions for now, with plans for paid upgrades for heavy AI users. Siri AI may require a paid subscription for heavy users. OpenAI's president acknowledged that their new Chat GPT desktop app is "kind of a mess". OpenAI is reportedly planning a wider hardware lineup, including a smartphone and speaker. An iy O trademark lawsuit against OpenAI and Jony Ive has been paused due to settlement talks.

Deals and Accessory Updates

Amazon is offering discounts on Apple products, including Air Pods Pro 3 for $199.99 and Air Pods Max 2 for $449. Air Tag 2 is available for a record low price of $89.00 for a 4-pack. Best Buy's Back to School sale includes discounts on AirPods and MacBooks. Twelve South updated its Valet Mag Safe charger with improved performance and a new size updated its charger.