Strong iPhone demand and services revenue propelled Apple’s Q3 earnings

Posted on July 31, 2026, 4 p.m.

Apple Defies Chip Shortages with Record-Breaking Q3 Earnings Driven by Strong iPhone and Services Growth

Apple has once again demonstrated remarkable financial strength, reporting a stellar quarter that saw the tech giant overcome persistent global memory chip supply constraints. Fuelled by robust iPhone demand and surging services revenue, Apple posted an impressive $109.4 billion in total revenue, marking a significant 16% increase year-over-year. Net profits also saw a substantial leap, reaching $29.8 billion – a 27% rise compared to Q3 of the previous fiscal year.

Two iPhones, silver and blue, held in hands.

iPhone Sales Lead the Charge with Explosive Demand

The venerable iPhone lineup continued to be a powerhouse for Apple, driving substantial revenue growth. For the three-month period concluding on June 27, 2026, iPhone sales generated an astounding $54.2 billion. This figure represents a healthy 21% increase from the same quarter last year, underscoring the enduring appeal and strong market position of Apple's flagship smartphone.

Services Division Continues Its Ascent, Boasting 1.5 Billion Paid Subscriptions

Apple's strategic pivot towards recurring revenue streams continues to pay dividends, with the services division reaching new heights. Encompassing a diverse portfolio including digital content, cloud computing, financial offerings, and advertising, this segment achieved a remarkable $30.7 billion in revenue. Highlighting the strength of its ecosystem, Apple proudly announced it now supports an incredible 1.5 billion paid subscriptions across its various platforms, solidifying its position as a digital content and services leader.

Four colorful Apple MacBook Air laptops open.

Mixed Performance Across Other Hardware Categories: Mac Soars, iPad Dips

While iPhone and services dominated the narrative, other hardware segments showcased varied results:

Mac revenues experienced a healthy surge, jumping 29% to reach $10.3 billion, indicating strong demand for Apple's computing lineup.
iPad sales, however, saw a slight downturn, settling at $6.2 billion for the quarter.
The Wearables, Home and Accessories division also contributed positively, with a modest 7% increase, bringing its revenue to $7.9 billion.

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