Apple News 8 Hours

Last updated: July 30, 2026, 8:30 PM ET

Apple Reports Q3 Results, Faces Supply Chain Headwinds

Apple announced third, posting a profit of $29.8 billion on $109.4 billion in revenue. The company despite anticipating significant supply constraints in the upcoming September quarter. These constraints are expected to impact demand for iPhones, iPads, and Macs due to a lack of supply-side availability. Apple CFO Kevan Parekh noted that regulatory changes to the App Store business model, alongside softness in mobile gaming, have begun to affect Services growth and revenue. Furthermore, Apple CEO Tim Cook described the current memory pricing as a "100-year flood," reluctantly leading the company to raise prices. Despite these challenges, Apple across its platform, though this still fell short of Wall Street's expectations. Tariff refunds also contributed to bolstering Apple's gross margins and earnings per share for the quarter.

AI Features and iCloud+ May Require Paid Subscriptions

to future product offerings, Apple is reportedly planning to allow users to pay for increased AI limits through iCloud+. This potential move suggests that advanced AI features, possibly including enhancements to Siri, may require a paid subscription for users with heavy usage. Tim Cook addressed mounting memory supply and pricing challenges during his final earnings call, indicating that adding more memory suppliers might not necessarily lead to lower product prices.

Tim Cook's Farewell and Leadership Transition

Today's earnings call marked a significant moment as it was outgoing Apple CEO Tim Cook's final earnings call before his formal resignation. Cook thanked shareholders for their support over the years and confirmed that John Ternus will be taking over as Apple's new CEO on September 1st, succeeding Cook in leading future earnings calls. Ternus's prior work, including the MacBook Neo, is credited with driving Mac sales to unexpected heights in the last quarter, with sales rising by more than 25% year-over-year. Apple also announced it would be making a donation to support earthquake relief efforts in Japan.

Product Development and Regulatory Landscape

In other developments, Apple spent a record $11.73 billion in research and development during Q3 2026, signaling continued investment in innovation. Reports suggest that the iPhone 18 Pro could transition away from Qualcomm modems to an Apple-designed C2 chip for cellular connectivity. There is also anticipation for a significant overhaul of Apple's smart home products, with rumors of three new devices nearing launch. Meanwhile, the U.S. FCC has banned new foreign-produced advanced robotic devices due to national security risks, which could impact future Matter and Home Kit models. In Brazil, Epic Games has launched the Epic Games Store on iPhones, bringing Fortnite and Rocket League Sideswipe back to the platform. Separately, U.S. Senators have demanded Apple commit to not purchasing Chinese memory chips, citing national security and economic concerns.