iPhone and Mac sales surge push Apple's quarterly revenue to $109 billion

[Daniel Sims]

Bottom line: Apple's last quarterly earnings report under CEO Tim Cook showed gains across nearly every category, led by iPhone and Mac sales. The budget MacBook Neo appears to have been a major contributor to that growth. But as the Cupertino company prepares to hand the reins to a new CEO, rising prices could complicate the road ahead. Apple has already begun responding with a new leasing program.

iPhone sales drove the largest gains, bringing in $54.3 billion in revenue during the third quarter of fiscal 2026, up 22% YoY. Services, wearables, iPads, and especially Macs also contributed, pushing overall revenue to $109 billion, up 16% YoY.

The MacBook Neo, Apple's first budget-priced MacBook, was likely the biggest driver behind that Mac growth. The entry-level notebook couldn't hold onto its $600 launch price for long, but it quickly outsold the MacBook Air and pushed Apple to double its production target.

AI fever likely played a role too, helping drive the Mac division's 29% YoY growth. The popularity of AI agents like OpenClaw triggered Mac mini shortages that stretched on for months.

Despite that impact, Apple has largely watched the AI boom from the sidelines. The company introduced a new AI-powered version of its digital assistant, Siri, earlier this year, but rivals Microsoft and Google have bet far more heavily on Copilot and Gemini, respectively.

That caution has drawn criticism from some quarters, but investors have also come to see Apple as something of a safe haven amid the AI market's volatility, helping the company reclaim its status as the world's most valuable.

Still, Apple couldn't escape the historic DRAM and NAND shortages stemming from the AI data center buildout. The full impact of recent price hikes, which pushed MacBook and iPad prices up by as much as $200 just days before the quarter ended, remains unclear.

Apple Upgrade, a leasing program the company announced earlier this week, could mark the start of a new era of hardware rentals.

Looking ahead, Tim Cook is set to step down as CEO in September, right as Apple unveils the iPhone 18 lineup and, potentially, the iPhone Ultra, the company's first foldable device.

Estimates on iPhone Ultra pricing vary, but some analysts expect it to retail for as much as $2,500, marking the start of a new flagship tier that could eventually extend to a touchscreen-enabled MacBook Ultra. Other upcoming products include a major overhaul of the iPad lineup, starting with an OLED-equipped iPad mini, and a refreshed Mac lineup built around Apple's new M6 chips.

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iPhone and Mac sales surge push Apple's quarterly revenue to $109 billion

 

[Megalomaniac]

I bought a Pink Macbook Neo 512GB as a gift. They raised the price $100 by the end of the following week.

I think the real question to ask is where is the Mac Pro? I have one at work with the premium display. It's a hell uva computer and genuinely nice to look at. But where's the follow up?

 

[Anton Longshot]

LOL I helped Apple do this by buying an M4 desktop and an M5 MacBook hahaha.
If everything goes according to plan I'll also get an iPhone 17 later this month.
Apple owes me! They should give me a bunch of Apple shares!

 

[The Talking Tech]

The questions are...

Are people truly able to afford these products?
Or are they putting them on credit cards?

And even then can they really pay those credit cards without paying more in overall interest?

I'm sorry but it's hard to believe that during this world economy and price hikes on technology people can truly afford this kind of purchases and not questioning themselves on:

"Should I really be buying this?
And was I that person crying about the prices of eggs"

 

[The Talking Tech]

LOL I helped Apple do this by buying an M4 desktop and an M5 MacBook hahaha.
If everything goes according to plan I'll also get an iPhone 17 later this month.
Apple owes me! They should give me a bunch of Apple shares!

Why ask Apple for shares when you have shown them you are perfectly capable to buy them yourself and more, since you are buying all those overpriced products without a financial worry in your mind in a time where 90% of the world is going through an economic crisis.

The "K" economy is very real, right?

 

[dangh]

Apple owes me!

Slight grammar mistake.
Apple OWNS you...

 

[The Talking Tech]

I bought a Pink Macbook Neo 512GB as a gift. They raised the price $100 by the end of the following week.

I think the real question to ask is where is the Mac Pro? I have one at work with the premium display. It's a hell uva computer and genuinely nice to look at. But where's the follow up?

You seem to be have a very good financial life since you truly have shown that in an economy like this with a technology price crisis it hasn't affect you at all.

Let's just hope you were never one of those people complaining for the price of eggs back then.

 

[Axeia]

I'm sorry but it's hard to believe that during this world economy and price hikes on technology people can truly afford this kind of purchases and not questioning themselves on:

"Should I really be buying this?"

You're not the target audience.

The only thing good consumers should think is "I want this".
There's a surprising amount of people who don't think about putting some money away to pay say next months rent or even how they're going to pay for food until their next payment comes in but will 'treat' themselves to whatever they don't need. A new iPhone, a trip to Disney, more Pokémon cards or heck - a bunch more Funko pops that end up in the closet because they ran out of space in the first place.

Companies are happy to oblige to these people, you can even pay for your ubereats in installments.

 

[The Talking Tech]

You're not the target audience.

The only question good consumers should have is "I want this".
There's a surprising amount of people who don't think about putting some money away to pay say next months rent or even how they're going to pay for food until their next payment comes in but will 'treat' themselves to whatever they don't need. A new iPhone, a trip to Disney, more Pokémon cards or heck - a bunch more Funko pops that end up in the closet because they ran out of space in the first place.

Companies are happy to oblige to these people, you can even pay for your ubereats in installments.

Definitely I'm not the target audience...neither 90% of the world

If you think most people know how to put money away for future purchases then VISA and MasterCard wouldn't exist.

Simple as that!

Good for those that can afford these type of purchases without the need a credit card and can still pay for housing, utilities, kids tuitions, car repairs, and everything else in life without crying for the price of eggs.

 

[hahahanoobs]

The questions are...

Are people truly able to afford these products?
Or are they putting them on credit cards?

And even then can they really pay those credit cards without paying more in overall interest?

I'm sorry but it's hard to believe that during this world economy and price hikes on technology people can truly afford this kind of purchases and not questioning themselves on:

"Should I really be buying this?
And was I that person crying about the prices of eggs"

They partnered with Klarna so brokies can lease an iPhone for $500 for 2 years then pay off the balance to keep it or leave it and start all over again with a new phone. It might even be all Apple hardware that is covered I can't remember.

You don't become a billionaire without being a scumbag along the way.

 

[Theinsanegamer]

Definitely I'm not the target audience...neither 90% of the world

If you think most people know how to put money away for future purchases then VISA and MasterCard wouldn't exist.

Simple as that!

Good for those that can afford these type of purchases without the need a credit card and can still pay for housing, utilities, kids tuitions, car repairs, and everything else in life without crying for the price of eggs.

There's millions of consumers that know how to use credit cards and have never once paid interest. Myself included. They are very useful tools.

Even if one is rich, one can still criticize the price of eggs. You seem to be under the delusion that someone with a good income doesn't care about pricing. A very reddit esqe way of viewing the world.

 

[hahahanoobs]

Definitely I'm not the target audience...neither 90% of the world

If you think most people know how to put money away for future purchases then VISA and MasterCard wouldn't exist.

Simple as that!

Good for those that can afford these type of purchases without the need a credit card and can still pay for housing, utilities, kids tuitions, car repairs, and everything else in life without crying for the price of eggs.

He started by claiming "I want this" was a question. I'm replying to you instead of him because I block tech wannabes like him on sight.

 

[The Talking Tech]

There's millions of consumers that know how to use credit cards and have never once paid interest. Myself included. They are very useful tools.

Even if one is rich, one can still criticize the price of eggs. You seem to be under the delusion that someone with a good income doesn't care about pricing. A very reddit esqe way of viewing the world.

In a world with over 7 billion people, I'm sure there are a few million that know how to use a credit card...that leaves at least 6 billion people that Visa and Master Card are thankful for.

And about those that can perfectly buy these items and have the nerve to cry for the price of eggs then I hope they can also afford for a good psychiatrist.

In another words most people can't and shouldn't be buying these items and yet they do love the struggle to pay for their compulsive purchases.

 

[Axeia]

He started by claiming "I want this" was a question. I'm replying to you instead of him because I block tech wannabes like him on sight.

I rephased it just now, it was improper grammar due to my chaotic writing process (going back and forth and editing).

Then again you've got me blocked, so who am I even talking to.