Apple’s Forecast Takes Shine Off Rise in Sales

By the Editorial Team · Friday, July 31, 2026

Apple projected slower revenue growth and slightly lower profit margins for the September quarter, falling short of analyst expectations due to ongoing supply chain bottlenecks and rising memory chip costs. Although Apple delivered strong sales gains in the June quarter, particularly for iPhones and Macs, these challenges are expected to limit near-term financial performance and contributed to a 7% drop in after-hours trading.

Apple’s forecast for the upcoming September quarter fell short of Wall Street expectations despite robust sales reported for the June quarter, raising concerns about near-term growth prospects for the technology giant.

The company anticipates revenue growth of between 9% and 11% in the September quarter, below analyst estimates centered around 12%. Gross profit margins are also projected to come in slightly under market forecasts. In response to the forecast, Apple shares declined by approximately 7% in after-hours trading.

The tempered outlook is largely attributed to ongoing supply chain challenges which have constrained Apple’s ability to fully meet demand for its key products, including iPhones, Macs, and iPads. These supply constraints, expected to intensify during the September quarter, stem primarily from difficulties securing sufficient quantities of logic chips manufactured by Taiwan Semiconductor Manufacturing Company. Apple Chief Financial Officer Kevan Parekh acknowledged the imbalance, noting that demand for Apple’s devices has significantly exceeded projections but the supply chain has lacked the flexibility to increase output accordingly.

Despite these headwinds, Apple posted strong sales figures for the June quarter. iPhone sales increased 21%, driven in part by the popularity of the iPhone 17. Mac sales surged nearly 30%, buoyed by the introduction of the entry-level MacBook Neo. Gross profits also rose compared with the prior quarter, aided by a one-time tariff refund amounting to roughly $2 billion.

However, not all segments performed as expected. The company’s services division, which comprises App Store fees, iCloud subscriptions, and other revenue streams, generally considered a consistent profit contributor in recent years, experienced headwinds. Fluctuations in foreign exchange rates negatively impacted the services business along with other unspecified challenges.

Adding to margin pressures, the rising cost of memory chips is forecast to further weigh on profits in the upcoming quarter. Despite the strong demand for Apple’s hardware, supply constraints and increased input costs are expected to temper overall financial results in the near term.

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.