Apple’s Q3: Blue skies, component cloud coming
Apple set June quarter records for total company revenue and EPS in its June quarter, during which iPhone, Mac and Services revenue set new June quarter records – but the impact of component shortages is real.
Apple posted quarterly revenue of $109.4 billion, up 16 percent year over year. Company gross margin was an astonishing 50.1 percent, though this was in part due to a favorable impact of approximately 2 percentage points from tariff refunds.
It is also worth taking note that Apple’s gross margin for services is far higher, with $30,739 million in sales for a cost of $7,494 million.
What Tim said
The financial call was also Tim Cook’s last as CEO, he confirmed his successor, John Ternus, will handle these in future. Taking a moment to thank investors and analysts, Cook added: “Today, Apple is proud to report our strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services, and in every geographic segment.”
“We are very pleased with our record business performance during the quarter, which set new June quarter records for both EPS and operating cash flow,” said Kevan Parekh, Apple’s CFO.
“Our installed base of active devices also reached a new all-time high across all major product categories and geographic segments.”
And how – Apple now has 1.5 billion subscribers.
Hardware highlights?
iPhone grew 21.7%, a very unusual pattern in what is usually Apple’s slower iPhone quarter. Mac sales increased 28.7%, way, way up on the 5.7% growth in the previous quarter. Wearables up 6.5%. Services up 12%. iPad down 5.9%.
Apple’s board of directors has declared a cash dividend of $0.27 per share of the Company’s common stock payable on August 13, 2026.
