Apple beats estimates on iPhone sales

By the Editorial Team · Friday, July 31, 2026

Apple reported a 16.4 percent increase in quarterly revenue to $109.4 billion, driven by a record $54.3 billion in iPhone sales during a typically slow third quarter. This strong performance comes as CEO Tim Cook prepares to step down, with John Ternus set to take over, and highlights Apple’s continued focus on integrating AI features within its product ecosystem.

Apple reported stronger-than-expected quarterly sales and profits for the period ending June 27, driven primarily by robust demand for its iPhone lineup. The company posted revenue of $109.4 billion, marking a 16.4 percent increase from the previous year and surpassing analyst projections of $108.65 billion. This performance represents a notable achievement for Apple’s third quarter, a period when smartphone sales typically slow as consumers await new models in the fall.

The surge in iPhone sales, which rose 21.7 percent to $54.3 billion and set a new record for the third quarter, offset weaker results in other product categories. Mac sales increased 28.7 percent to $10.4 billion, exceeding estimates of $8.7 billion, while iPad revenue declined 5.9 percent to $6.2 billion, falling short of the $6.92 billion anticipated by analysts. The decrease in iPad sales was attributed to a challenging year-over-year comparison, following the launch of a budget-friendly A16 iPad during the same quarter in 2025.

Apple’s services division, encompassing offerings such as the App Store and iCloud, generated $30.7 billion in revenue, a 12.1 percent rise year over year but slightly below the $31.2 billion expected by market watchers.

The strong iPhone sales come amid a global shortage of memory chips, which has led Apple to increase prices for other hardware products such as Macs and iPads. Market analysts suggest that Apple may also raise iPhone prices around the time of its annual product launch event scheduled for September.

This quarter’s report is the final earnings announcement under the leadership of Chief Executive Officer Tim Cook, who plans to step down in September. Cook will be succeeded by John Ternus, a veteran Apple executive who has played a key role in the company’s hardware division since 2013.

In terms of technology strategy, Apple continues to differentiate itself from competitors by focusing on the practical integration of artificial intelligence features within its existing ecosystem rather than pursuing fully autonomous AI agents. At its developers conference in June, the company introduced “Siri AI,” a conversational assistant that functions as a standalone app and is capable of analyzing user screen content and retrieving relevant information from the internet.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.