Apple saw an excellent and better-than-anticipated Q3 2026 in terms of iPhone sales, but its revenue for services—like Apple TV, Apple Music, AppleCare, or iCloud—slipped downward, disappointing experts who were hoping for more. Further, fears about memory prices and supply constraints slightly soured reception to what could have otherwise been a slightly positive but business-as-usual quarter.
That’s the key takeaway from the company’s Q3 2026 earnings call today.
As for specific numbers, iPhone revenue was $54.25 billion, thanks to a 22 percent increase in iPhone sales. The Mac saw $10.35 billion in revenue, the iPad $6.19 billion, wearables $7.88 billion, and services $30.74 billion. Overall, Apple enjoyed $109.42 billion in revenue during the quarter.
Apple also noted that the Mac had a very strong quarter in many regions, partially crediting that result to the popularity and success of the MacBook Neo, a stripped-down, more affordable entry-level SKU in the MacBook lineup.
There may be stormy waters ahead, though. Apple has already raised many of its products’ prices in the face of a global mismatch between supply and demand for memory. Chip manufacturing is also tight. Significant price increases could lead to lower overall sales if prices exceed consumers’ comfort level. This quarter contained some of that impact, but it likely does not reflect the full brunt of it. Many potential Mac buyers might choose to wait until better economic conditions over the next several months, hoping for prices to eventually come back down.
Apple hasn’t yet raised iPhone prices, but that’s still a possibility. Cook said while taking questions on the call that Apple expects memory costs to continue to increase into the next quarter and beyond. That situation could continue to impact the business, he said.