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Apple’s Greater China and Services Sales Miss Estimates as Supply Shortages Pressure Outlook

2026-07-31·newswire-us-stock-004936

Apple’s Greater China and Services Sales Miss Estimates as Supply Shortages Pressure Outlook.

Apple shares plunged in after-hours trading after a shortage of components weighed on sales expectations, suggesting that the negative impact of supply-chain constraints facing the entire industry is more severe than expected.

On Thursday, Apple said on its earnings call that revenue for the fiscal fourth quarter ending in September is expected to rise 9% to 11%. Analysts had previously expected growth of more than 12%. Apple has been struggling with shortages of memory chips and computer processors, which forced the company to raise Mac and iPad prices in June.

Tight supply has led to longer delivery waits for key computer products such as the Mac mini and Mac Studio. Chief Financial Officer Kevan Parekh said on the call that supply constraints will affect the iPhone, Mac and iPad businesses in the quarter ending in September. He said currency fluctuations are also weighing on growth.

The earnings report also showed that growth in Apple’s services business and sales in Greater China both came in below analysts’ expectations last quarter, stoking investor concerns about the two key markets.

Although total revenue topped analysts’ forecasts, Apple’s Greater China sales in the fiscal third quarter were $18.8 billion, well below the $19.6 billion analysts had expected. Services revenue was $30.7 billion, also below the $31.4 billion forecast. In a sense, last quarter was also a farewell performance for CEO Tim Cook.

Cook is set to hand management over to hardware chief John Ternus on Sept. 1. Since taking the helm at Apple in 2011, Cook has diversified the product lineup and lifted the company’s annual sales to nearly $500 billion. As Apple’s biggest source of revenue, the iPhone was a bright spot in Thursday’s results.

Revenue from the product rose 22% in the quarter to $54.3 billion, above the market’s expectation of $53.6 billion. The figures suggest demand for Apple’s iPhone 17 lineup, introduced last September, remains solid. The company also introduced a new lower-priced model, the iPhone 17e, in March.

Services revenue, which includes Apple Music, the App Store, iCloud subscriptions, streaming video and other digital services, rose 12% last quarter, a disappointing result. For the quarter ended June 27, Apple’s earnings per share rose to $2.02, above analysts’ average estimate of $1.89.

Mac revenue was about $10.4 billion, up 29% and far above the market’s expectation of $8.62 billion. In March, Apple introduced several new Mac products, including the MacBook Neo, the MacBook Pro with the M5 chip and a new MacBook Air. iPad revenue was $6.19 billion, below analysts’ expectation of $6.89 billion.

Apple launched a new iPad Air in March and updated the iPad Pro last October, but both products mainly received chip upgrades rather than major design changes. Apple plans to launch several new Macs and iPads between the end of this year and next spring to boost sales, including its first touchscreen MacBook and a new iPad mini.

#Stocks #Apple #Semiconductors #Earnings

Full text

Apple’s Greater China and Services Sales Miss Estimates as Supply Shortages Pressure Outlook

Apple shares plunged in after-hours trading after a shortage of components weighed on sales expectations, suggesting that the negative impact of supply-chain constraints facing the entire industry is more severe than expected. On Thursday, Apple said on its earnings call that revenue for the fiscal fourth quarter ending in September is expected to rise 9% to 11%. Analysts had previously expected growth of more than 12%. Apple has been struggling with shortages of memory chips and computer processors, which forced the company to raise Mac and iPad prices in June. Tight supply has led to longer delivery waits for key computer products such as the Mac mini and Mac Studio. Chief Financial Officer Kevan Parekh said on the call that supply constraints will affect the iPhone, Mac and iPad businesses in the quarter ending in September. He said currency fluctuations are also weighing on growth. The earnings report also showed that growth in Apple’s services business and sales in Greater China both came in below analysts’ expectations last quarter, stoking investor concerns about the two key markets. Although total revenue topped analysts’ forecasts, Apple’s Greater China sales in the fiscal third quarter were $18.8 billion, well below the $19.6 billion analysts had expected. Services revenue was $30.7 billion, also below the $31.4 billion forecast. In a sense, last quarter was also a farewell performance for CEO Tim Cook. Cook is set to hand management over to hardware chief John Ternus on Sept. 1. Since taking the helm at Apple in 2011, Cook has diversified the product lineup and lifted the company’s annual sales to nearly $500 billion. As Apple’s biggest source of revenue, the iPhone was a bright spot in Thursday’s results. Revenue from the product rose 22% in the quarter to $54.3 billion, above the market’s expectation of $53.6 billion. The figures suggest demand for Apple’s iPhone 17 lineup, introduced last September, remains solid. The company also introduced a new lower-priced model, the iPhone 17e, in March. Services revenue, which includes Apple Music, the App Store, iCloud subscriptions, streaming video and other digital services, rose 12% last quarter, a disappointing result. For the quarter ended June 27, Apple’s earnings per share rose to $2.02, above analysts’ average estimate of $1.89. Mac revenue was about $10.4 billion, up 29% and far above the market’s expectation of $8.62 billion. In March, Apple introduced several new Mac products, including the MacBook Neo, the MacBook Pro with the M5 chip and a new MacBook Air. iPad revenue was $6.19 billion, below analysts’ expectation of $6.89 billion. Apple launched a new iPad Air in March and updated the iPad Pro last October, but both products mainly received chip upgrades rather than major design changes. Apple plans to launch several new Macs and iPads between the end of this year and next spring to boost sales, including its first touchscreen MacBook and a new iPad mini.

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