Apple posts record Jun qtr revenue of $109.4B

Tech giant Apple has posted record June quarter revenue of $109.4 billion, up 16% on a year-on-year basis, supported by double-digit growth in most emerging markets including India, but flagged business risks in the next few quarters due to rising memory chip prices and supply constraints, according to a top company official.

While the Americas continues to be the biggest contributor in Apple's revenue, the company recorded the highest growth rate of 22.42% in Greater China, followed by Europe 22.4% and Rest of Asia Pacific 15.6%.

"We achieved June quarter revenue records in every geographic segment. We were pleased to see strength across the board with June quarter records in the US, Latin America, Western Europe, India, China mainland, Japan, and Southeast Asia.

"We also achieved June quarter revenue records in both developed and emerging markets and saw double-digit growth in most emerging markets," Apple CEO Tim Cook said in the last earnings call as the company's top executive.

John Ternus is scheduled to take over as CEO on September 1, 2026.

The company's gross margin was 50.1%, including a favourable impact of approximately 2 percentage points from tariff refunds.

iPhone sales during the reported quarter increased by 21.7% to $54.25 billion from $44.58 billion a year ago. Mac sales grew 28.66% to $10.35 billion from around $8 billion, and the wearables, home and accessories segment grew by 6.46% to $7.88 billion from $7.4 billion.

Apple CFO Kevan Parekh said Apple grew in both developed and emerging markets, with strong double-digit growth in markets like Latin America, India, and Southeast Asia.

"The customer reception to MacBook Neo has been incredible. We continue to attract new customers to the product around the world. As Tim mentioned, Mac had its best quarter ever for customers new to the Mac and for upgraders worldwide, including in the US, China mainland, and India. And in the US, customer satisfaction for Mac was recently measured at 95%," he said.

The sales of iPad during the reported quarter declined by about 6% to $6.19 billion from $6.58 billion.

Apple has increased the starting prices of MacBook and iPad models in the range of 20% to 42% compared to their launch prices across the globe, including India, mainly due to an increase in the cost of memory chips in the last week of June.

The company is likely to see an adverse impact of rising memory prices in the coming quarter.

Cook said that, as he mentioned on the last call, the company has paid more for memory chips in the March and December quarters.

"As I alluded to last quarter, we expected to pay significantly more in the June quarter than the March quarter. That is what happened. It was partially offset by the benefit of carry-in inventory. For September, we expect to pay even higher memory costs and we are able to offset this partly by a few factors. The first is, as you would expect, we have a benefit from some carry-in inventory in the September quarter.

However, we believe this will see decreasing benefit from this over time beyond the September quarter," Cook said.

He said that the company expects lower costs on certain non-memory components that are in the total bill of material.

"If you look beyond September, we see the market pricing for memory continuing to increase, which could drive an increasing impact on our business," Cook said.

Analyst with IDC India, Navkendar Singh, said India was again a standout for Apple in the reported quarter, setting another revenue record with double-digit growth.

"On a still-modest share of the world's second-largest smartphone market, that signals a long runway, powered by first-time buyers, wider retail and financing access, and roughly a quarter of iPhones now assembled locally. The near-term will test this - Apple has flagged significant supply constraints in the next few quarters, and a global memory-cost crunch is pushing prices up. Prices for iPhones will see an increase in the next few weeks; however, demand should absorb it," Singh said.

Neil Shah, Co-Founder and VP for Research at market research and analysis firm Counterpoint, said that Apple has enjoyed a nice boost in Mac demand — especially for the MacBook Neo through Pro — thanks to more budget-friendly pricing and staying ahead of competitors’ price hikes.

"Since Apple's price increases arrived late in the quarter, customers rushed in throughout Q2, helping growth.

For iPhones, demand grew just a bit during what's usually a quiet time, but more people are choosing premium models. Even with possible price tweaks, the new lineup could create a positive ripple effect for Apple in the months ahead,” he said.