Apple is intensifying preparations for its annual September product launch event while incoming CEO John Ternus assembles his leadership team and new details emerge about a discarded element of the company’s recently launched device-leasing program called “Apple Upgrade.”

The company is readying for what is described as its biggest event of the year, expected in the first half of September. Retail employees in the U.S. are participating in a lottery for roles supporting the in-person media gathering at Apple Park, including organizing lines, checking in guests, providing directions, greeting attendees, and assisting security. The event is widely anticipated to feature the latest iPhone models, including Pro variants and Apple’s first foldable iPhone, among other hardware.

At the same time, John Ternus is preparing to assume the CEO role on September 1, succeeding Tim Cook, who will become executive chairman. As part of early management moves, Bloomberg News‘ Mark Gurman reports, Ternus has brought back Laura Legros, a former vice president of hardware engineering who retired in 2022. Legros previously worked under Ternus and will return as a vice president reporting directly to him. In the new role, she is expected to work cross-functionally, helping coordinate product delivery, development schedules, and alignment across engineering teams — serving as a bridge between different parts of the organization. The hire marks a rare instance of Apple recalling a retired executive and reflects Ternus beginning to put his stamp on the leadership ranks ahead of the transition.

Separately, fresh details have emerged about a scrapped “white-glove” concept for Apple Upgrade, the leasing program that launched in late July and replaced the prior iPhone Upgrade Program and standard financing options. Apple had considered shipping replacement devices already preloaded with a customer’s data and settings restored from an iCloud backup, so the new hardware would arrive ready to use. The technical challenges were not the primary barrier. Instead, privacy and security concerns — along with the optics of the company accessing and restoring personal backups onto devices in its facilities — led the company to abandon the idea. The launched version of Apple Upgrade does not include any such pre-setup feature.

These developments underscore Apple’s focus on a high-stakes product cycle and organizational shifts as Ternus prepares to lead the company into its next phase.

MacDailyNews Take: We’re glad that Apple Upgrade feature was scrapped! Now, we hope for Ternus’ sake that there are enough people left at Apple who remember how the company ran under Steve Jobs so that the company can quickly get back into that mindset. Churning out iterations of Jobs era products for fifteen years fueled a lot of brain drain and Cook era sclerotic thinking at the company over the last decade and a half. Fingers crossed!

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As Tim Cook hands the reins to hardware engineering chief John Ternus in September 2026, the company faces its biggest leadership transition in 15 years. While Cook’s tenure delivered massive revenue growth and operational excellence, many former employees and analysts say Apple has lost the product-first, risk-taking design culture that defined the Jobs years. Fortune explores whether Ternus can shift the company from steady iteration back to true innovation.

Sebastian Herrera for Fortune:
‎

Matthew Rogers remembers Apple’s scrappy days when, as an engineer fresh out of college, he could debate ideas directly with Steve Jobs… “I was 23, 24 years old, and I interacted with Steve Jobs. That’s crazy, right? But that’s the organization he ran,” Rogers told Fortune from his Silicon Valley office (he now runs food-recycling startup Mill).

Back then, Apple’s hierarchy was much flatter. What made Apple special, he said, is that Jobs surrounded himself with consumer-minded product leaders who were expected to argue. The mandate was to build “the best thing out there” and take real risks. Some of Apple’s most iconic products came out of a skunkworks team across the street from the main office.

That much-mythologized era continues to shape — and perhaps burden — Apple as it navigates its biggest leadership transition in 15 years. Somewhere along the way, Apple lost a part of its design and product magic, Rogers and several former design and hardware employees, investors, and analysts said. The September handoff from Tim Cook to incoming chief executive John Ternus, who currently leads hardware engineering, has Rogers and other longtime Apple watchers wondering: Can the company reclaim its product-first soul?

Rogers, who also cocreated smart home company Nest with former Apple executive Tony Fadell, said Ternus now faces a defining test. “I’ll put it this way,” he said. “He has a tall task, but a big opportunity.”

‎
MacDailyNews Take: As we posted on X just yesterday:

Under Tim Cook, Apple systematically strayed from Steve Jobs’ core vision. Product Design, the very soul of the company Jobs rebuilt, was demoted, sidelined, and subordinated to operations, supply-chain efficiency, and services revenue. The result? Fifteen long years of polished, but profoundly boring iteration: thinner bezels, faster chips, incremental camera bumps, and endless “Pro” variants that rarely moved the industry forward the way the original iPhone, iPad, or even the aluminum unibody MacBooks once did.

Jobs put Design at the absolute top of the food chain. Jony Ive’s group wasn’t a service department; it was the engine. Cook flipped the hierarchy. Hardware engineering, operations, and finance called the shots (poorly; witness Luca Maestri famously rejecting calls to invest in AI early on which is why he’s now sidelined). Design became reactive instead of directive. The Vision Pro launched as an impressive, but overpriced, underbaked curiosity. After billions spent, the Apple Car evaporated. True category-defining leaps simply did not happen.

Now comes John Ternus, a product person, a hardware guy who has spent his career shipping actual devices rather than optimizing margins. Early signals are encouraging: bringing trusted hardware lieutenants back into the fold and already embedding himself with the industrial design group. That is exactly the right instinct.

If Ternus moves quickly to restore Design to its rightful place at the apex of Apple’s decision-making, the company might finally escape the long, comfortable, lucrative mediocrity of the Cook era. Apple doesn’t need another fifteen years of safer, prettier, or just different iterations. It needs the return of products that make people stop, stare, and rethink what a computer in their pocket, on their wrist, or on their face can be.

The hardware engineer is about to become CEO. The question is whether he has the will — and the authority with Cook looming as Executive Chairman — to put Design back on top where Jobs left it. The next few years will tell us if Apple can innovate again… or if the iteration treadmill simply continues under a new CEO.

Fingers crossed!

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The post Can new CEO John Ternus bring back Apple’s design mojo? appeared first on MacDailyNews.

Incoming Apple CEO John Ternus is bringing back a trusted lieutenant from his time running hardware engineering to join his new management team.

Ternus has hired Laura Legros, who served as a vice president of hardware engineering until retiring in 2022, according to people with knowledge of the matter. Legros will report to Ternus when he takes the CEO role on Sept. 1st, Bloomberg News’ Mark Gurman reports citing people who asked not to be identified because the personnel change hasn’t been announced.

The move shows that Ternus is starting to put his stamp on the company’s leadership ranks. It also marks a rare case of an Apple executive returning to the company after retirement. In her new role, Legros will act as a vice president working cross-functionally with different parts of the company.

According to Gurman, during her career at Apple, Legros helped manage product delivery, development schedules and coordination across engineering teams to ensure they remained aligned. Before retiring, she was one of Ternus’ most trusted deputies. In 2018, she appeared during an Apple product launch event to introduce a new version of the MacBook Air. Two years later, she unveiled the current iPad Air design.

Over the past several months, Ternus has been shadowing Cook and helping lead executive meetings. The incoming CEO has already met with leaders across the company and participated in roadmap reviews for a number of divisions for the coming year. Ternus has also been spending considerable time with Apple’s industrial design group.

Ternus will have a slew of executive changes to oversee in the coming years as multiple members of Apple’s leadership team approach retirement age. This includes the likes of App Store boss Phil Schiller and Luca Maestri, who oversees real estate and information systems. Kate Adams, who transitioned to overseeing government affairs after serving as general counsel, plans to retire at the end of this year.Ternus, currently Apple’s senior vice president of hardware engineering, is set to succeed Tim Cook as CEO on September 1st. Cook will become executive chairman of the board.

MacDailyNews Take: Under Tim Cook, Apple systematically strayed from Steve Jobs’ core vision. Product Design, the very soul of the company Jobs rebuilt, was demoted, sidelined, and subordinated to operations, supply-chain efficiency, and services revenue. The result? Fifteen long years of polished but profoundly boring iteration: thinner bezels, faster chips, incremental camera bumps, and endless “Pro” variants that rarely moved the industry forward the way the original iPhone, iPad, or even the aluminum unibody MacBooks once did.

Jobs put Design at the absolute top of the food chain. Jony Ive’s group wasn’t a service department; it was the engine. Cook flipped the hierarchy. Hardware engineering, operations, and finance called the shots (poorly; witness Luca Maestri famously rejecting calls to invest in AI early on which is why he’s now sidelined). Design became reactive instead of directive. The Vision Pro launched as an impressive, but overpriced, underbaked curiosity. After billions spent, the Apple Car evaporated. True category-defining leaps simply did not happen.

Now comes John Ternus, a product person, a hardware guy who has spent his career shipping actual devices rather than optimizing margins. Early signals are encouraging: bringing trusted hardware lieutenants back into the fold and already embedding himself with the industrial design group. That is exactly the right instinct.

If Ternus moves quickly to restore Design to its rightful place at the apex of Apple’s decision-making, the company might finally escape the long, comfortable, lucrative mediocrity of the Cook era. Apple doesn’t need another fifteen years of safer, prettier, or just different iterations. It needs the return of products that make people stop, stare, and rethink what a computer in their pocket, on their wrist, or on their face can be.

The hardware engineer is about to become CEO. The question is whether he has the will — and the authority (with Cook looming as Executive Chairman) — to put Design back on top where Jobs left it. The next few years will tell us if Apple can innovate again… or if the iteration treadmill simply continues under a new CEO.

---

‎
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The post Apple’s incoming CEO Ternus taps retired hardware executive for management team appeared first on MacDailyNews.

Todas as empresas de capital aberto (que possuem ações à venda na bolsa de valores) são obrigadas, por lei — na maioria dos países (inclusive Brasil) —, a disponibilizar publicamente suas demonstrações financeiras periodicamente. Esse costuma ser um momento bastante esperado por acionistas (analisando se a empresa na qual estão investindo está sendo bem administrada e gerando lucros), investidores (para captar novas oportunidades de alocar seus recursos), além da imprensa e de curiosos em geral. Na última quinta-feira (30/7), foi a vez da Apple de divulgar seus resultados financeiros referentes ao trimestre abril-junho de 2026.

Para alegria de todos, o CEO ¹Chief executive officer, ou diretor executivo. Tim Cook se despede da sua posição com o melhor terceiro trimestre fiscal que a empresa já registrou — um recorde absoluto! Como já informado aqui no MacMagazine, no período de abril a junho (encerrado no dia 27/6), a companhia relatou uma receita de US$109,4 bilhões (alta de 16,4%) em relação ao mesmo trimestre do ano anterior, e lucro líquido de US$29,8 bilhões (um avanço de 27%). A margem bruta chegou a incríveis 50,1%, a maior já apurada em períodos semelhantes da história da empresa!

Hoje, a Apple tem orgulho de relatar o nosso melhor trimestre de abril-junho de todos os tempos, com crescimento de receita de dois dígitos em iPhone, Mac e Serviços, e em todos os segmentos geográficos.

A fala acima é de Cook. Ele deixará o cargo em 1º de setembro, quando John Ternus assumirá, e passará a presidir o conselho de administração.

O fenômeno Mac

Uma das grandes surpresas do relatório foi o crescimento no faturamento de Macs. Pela primeira vez, a categoria ultrapassou a casa dos US$10 bilhões em um trimestre abril-junho, e o crescimento de 29% superou o do iPhone.

A explicação está em parte na procura alucinada por Macs mini para rodar agentes de inteligência artificial e na leva de lançamentos de março: MacBook Air com M5, MacBook Pro com M5 Pro e M5 Max, e principalmente o MacBook Neo, o modelo de entrada que estreou a US$600 — preço que subiu para US$700 em junho, no reajuste geral motivado pelo custo de memória. A Apple parece ter encontrado um mercado relevante abaixo do Air, e vale acompanhar o que isso faz com a margem da linha nos próximos trimestres.

O iPad foi a única categoria no vermelho, com queda anual de 6%. Não é surpresa: a própria Apple havia avisado que a comparação seria difícil, pois no ano anterior houve o lançamento do iPad com chip A16. O iPad Air com M4, que chegou em março, não foi suficiente para compensar. Cabe ainda analisar se o bem-sucedido MacBook Neo não acabou levando um pouco do mercado dos tablets, também.

O asterisco que quase ninguém vai mencionar

A margem bruta de 50,1% e o lucro por ação de US$2,02 não são resultado apenas da operação, e esse detalhe se perde facilmente na comemoração dos recordes.

À primeira vista, no press release — e nos comentários que fizemos no último podcast —, esse ponto não ficou bem claro, mas merece atenção. A Apple informou, no comunicado, que a margem incluiu cerca de dois pontos percentuais e o lucro por ação incluiu US$0,11 vindos de reembolso de tarifas, dinheiro que a empresa havia pago ao governo americano e recebeu de volta depois que a Suprema Corte derrubou, em fevereiro, as tarifas impostas sob a IEEPA (a lei de poderes econômicos internacionais de emergência). A empresa não detalhou a origem exata dos valores devolvidos, mas a decisão da Corte é o evento que abriu caminho para os reembolsos.

É dinheiro real, entra legitimamente no resultado, mas não é recorrente e não diz nada sobre a capacidade da Apple de vender aparelhos. Descontando o efeito, a fotografia muda um pouco: a margem bruta cai para aproximadamente 48%, exatamente o que o consenso projetava, e o lucro por ação vai para cerca de US$1,91, contra os US$1,89 esperados. De uma superação de 6,9% no lucro, sobra uma de pouco mais de 1%.

Ou seja: o trimestre continua bom em receita e em volume, que são genuinamente fortes. Mas o brilho extraordinário no lucro é, em boa parte, contábil, e não se repete.

A Apple abre a margem bruta em dois blocos apenas: produtos e serviços. Ela nunca divulga margem por categoria individual (não existe margem oficial de iPhone, Mac ou iPad em documento nenhum da empresa, e todo número desse tipo que circula é estimativa de analista), mas os dois blocos que ela abre já contam a história.

Linha de negócio	Margem do FQ3 2026	Margem do FQ3 2025	Variação
Produtos	40,07%	34,52%	+5,55pp
Serviços	75,62%	75,58%	+0,04pp
Consolidado	50,06%	46,49%	+3,57pp

A margem de hardware subiu 5,55 pontos percentuais em 12 meses. A margem de hardware não sobe 5 pontos por ganho de eficiência: é ali que o reembolso de tarifas desembarcou, porque tarifa incide sobre produto físico. A prova está na linha seguinte: serviços, que não pagam tarifa nenhuma, ficou praticamente parado. A melhora não foi operacional.

Vale registrar um desequilíbrio que explica boa parte do valuation da Apple. Serviços representam 28,1% da receita, mas respondem por 42,4% do lucro bruto do trimestre. Produtos são 71,9% da receita e apenas 57,6% do lucro. Cada dólar de serviço vale quase o dobro de um dólar de hardware, e é por isso que o mercado aceita pagar perto de 40x o lucro por uma empresa que, no fim das contas, vende telefone.

Serviços: um pequeno sinal de alerta

Os relatórios revelaram um problema silencioso do trimestre. Serviços cresceram 12,1%, um bom número isolado, mas bem abaixo dos 16,2% do trimestre encerrado em março e, mais grave, abaixo do que a própria Apple havia sinalizado. Na teleconferência de abril, o diretor financeiro Kevan Parekh disse que os serviços cresceriam em ritmo “similar ao reportado em março” (ou seja, algo perto de 16%, ressalvando o efeito cambial). Ficaram cerca de 4 pontos percentuais aquém.

A linha chegou a recuar 0,8% em relação ao trimestre imediatamente anterior. Foi o único item da projeção que a Apple não cumpriu, e não é um item qualquer: é o que sustenta o múltiplo da ação. Parte da imprensa de mercado atribuiu a reação negativa à combinação de serviços com a Grande China, embora as estimativas para a região divergissem bastante entre as casas: havia projeções de US$18,8 bilhões, que o resultado cumpriu, e de US$19,5 bilhões, que não.

Some-se a isso um risco que não tem data marcada. Boa parte da receita dos serviços vem do acordo pelo qual o Google paga à Apple para ser o buscador padrão do Safari — cerca de 36% da receita de anúncios de busca, algo próximo de US$20 bilhões por ano. Existe um processo em andamento que questiona a legitimidade desta taxa. A sentença de setembro de 2025 permitiu que o acordo continuasse, mas o Departamento de Justiça dos Estados Unidos recorreu em fevereiro de 2026 e o Google entrou com recurso próprio em maio. Se a decisão cair, o buraco nessa linha é de dois dígitos de bilhão!

Três números que o comunicado não destaca

Fora das manchetes do balanço, três indicadores das demonstrações merecem atenção, e nenhum deles apareceu no material de divulgação.

1. O estoque quase dobrou, de US$5,7 bilhões em setembro de 2025 para US$11,1 bilhões, alta de 94%. Uma empresa que é referência mundial em operar com estoque enxuto dobrou o estoque em 9 meses. A leitura mais provável é compra antecipada de memória, antes que os preços subam ainda mais. É a confirmação contábil do que Cook disse em junho, quando afirmou que aumentos de preços eram inevitáveis.
2. Pesquisa e desenvolvimento saltou para US$11,7 bilhões, o dobro do ritmo da receita, e passou de 9,4% para 10,7% do faturamento. Ao mesmo tempo, o investimento em ativo fixo (equipamentos, imóveis, veículos etc.) caiu 28% no acumulado de 9 meses. É a tese da IA “capital-light” traduzida em números: a Apple gasta mais em gente e software, e menos em concreto e servidor, apostando em rodar inteligência nos mais de 2 bilhões de aparelhos que já estão nas mãos dos usuários. O oposto de Microsoft, Google e Amazon.
3. O caixa operacional de 9 meses foi de US$117 bilhões, contra US$81,8 bilhões. Mesmo assim, a recompra de ações caiu de US$70,6 para US$62,1 bilhões. A Apple está segurando dinheiro, o que é coerente com o estoque dobrado e com uma troca de comando marcada para 1º de setembro.

Há ainda um detalhe na linha de outras receitas, que agrupa o que a Apple ganha fora da operação: juros do caixa aplicado, juros pagos sobre dívida, variação cambial e valorização de participações minoritárias. O resultado foi de US$572 milhões positivos, contra US$171 milhões negativos há um ano — um giro de US$743 milhões. A carteira de caixa e aplicações subiu para US$146,5 bilhões, enquanto a dívida caiu para US$82,3 bilhões. Mais dinheiro rendendo, menos juros a pagar. É lucro financeiro, não operacional.

A projeção para setembro veio bem abaixo

O trimestre relatado é recorde. A projeção que o acompanha, não. E como o mercado precifica futuro e não passado, foi ela que dominou a reação. A ação, que havia fechado o pregão a US$333,43, caiu cerca de 6,5% na negociação estendida ao longo da teleconferência, o que equivale a aproximadamente US$317 bilhões de valor de mercado. No dia seguinte, a queda se confirmou: -7,35%. A projeção da Apple para o trimestre de setembro, o último do ano fiscal, veio com dois números desconfortáveis.

Indicador	FQ3 2026 (real)	FQ4 2026 (projetado)
Crescimento de receita	16,4%	de 9% a 11%
Margem bruta	50,1%	de 47% a 48%
Margem bruta sem reembolso de tarifas	48,1%	de 47% a 48%
Receita implícita	US$109,4 bilhões	de US$111,7 a US$113,7 bilhões

A desaceleração de 16,4% para algo entre 9% e 11% já seria suficiente para incomodar. O que agravou foi a justificativa: Parekh afirmou que o impacto das restrições de oferta deve “aumentar significativamente” em relação ao trimestre anterior — citando explicitamente iPhone, Mac e iPad —, e mencionou ainda ventos contrários de câmbio sobre a receita de iPhone.

A margem projetada de 47% a 48% é o número mais revelador de todo o balanço. Ela fica abaixo do resultado limpo deste trimestre sem o reembolso de tarifas. Ou seja: a Apple está dizendo que a margem vai cair de verdade, em bases comparáveis. O colchão de estoque de memória comprado a preço favorável, que segurou os custos nos últimos trimestres, está acabando, e o trimestre de setembro é justamente o que carrega o lançamento dos “iPhones 18 Pro/18 Pro Max” — e provavelmente do “iPhone Ultra”, o primeiro dobrável da empresa.

O que Ternus herda

Ternus assumirá como diretor executivo em 1º de setembro, com Cook passando a presidente executivo do conselho. A julgar pelo balanço, ele recebe uma casa em ordem: receita recorde, base instalada de aparelhos ativos em máxima histórica em todas as categorias principais, patrimônio líquido de US$107,5 bilhões e — possivelmente — a companhia mais valiosa do mundo.

Recebe também três problemas bem definidos. O primeiro é o custo de memória, que já forçou aumentos de preço no MacBook Air, no Mac mini e no Mac Studio, e que agora vai comprimir margem sem o amortecedor do estoque barato.

O segundo é a desaceleração dos serviços, com os recursos judiciais contra o acordo de busca com o Google ainda pendentes.

O terceiro é entregar a Siri reformulada, anunciada na WWDC26, movida pelo Gemini do Google, prevista para o ciclo do iOS 27 e adiada por tempo indeterminado na União Europeia — decisão que a Apple atribui às exigências da Lei dos Mercados Digitais (Digital Markets Act, ou DMA).

A leitura mais honesta deste balanço talvez seja esta: Cook encerra sua gestão entregando o melhor trimestre abril-junho da história da Apple, a maior capitalização de mercado do mundo e uma operação que cresce dois dígitos em todos os continentes em que atua. O que ele não entrega pronto é a próxima curva: provar que a aposta de rodar inteligência artificial dentro do aparelho, e não na nuvem, vale o múltiplo de 40x que a ação vinha cobrando. Essa parte, agora, é com Ternus.

Notas de rodapé

• 1
  Chief executive officer, ou diretor executivo.

Apple (transcript, Hacker News):

The Company posted quarterly revenue of $109.4 billion, up 16 percent year over year.

[…]

“Today, Apple is proud to report our strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services, and in every geographic segment,” said Tim Cook, Apple’s CEO.

Jason Snell:

iPhone revenue was up 22%, Mac revenue was up 10.4%, Services revenue was up 12%, and Wearables revenue was up 6%. iPad revenue was down 6%.

John Voorhees:

Together, iPhone and Services accounted for 77.7% of Apple’s $109.4B in net sales.

Jordan Golson:

Gross margin for the quarter was 50.1 percent, compared to 46.5 percent in the year-ago quarter.

Jason Snell:

You can’t argue with the strong iPhone and Mac sales figures, and Apple specifically called out the MacBook Pro and the MacBook Neo, which Cook said “has been especially popular” and suggested that the company is still struggling to make them fast enough.

It’s admirable (and sensible) that Cook isn’t pointing fingers at anyone but customers who want Apple products, but the key phrase in his statement is “the supply chain just has less flexibility in it than normal.” This is an acknowledgement that while in the past, Apple might have been able to boost chip production from its partners, today the chip industry is maxed out thanks to the wild building of chips for AI applications.

[…]

As an aside, Cook also alluded to reports that Apple has tried to get the U.S. government to authorize purchase of RAM from some forbidden Chinese chipmakers, which has aroused political ire.

See also: MacRumors.

Previously:

• Apple Financial Statements: Products vs. Services
• Apple Hardware Price Hikes
• Apple’s Q2 2026 Results
• MacBook Neo Sales
• Apple’s Q3 2025 Results

Tim Cook’s fifteen-year run as Apple’s CEO is closing not with a victory lap, but with a sharp reminder of the limits of his signature skill set. Fresh off a record June quarter, the company under his final guidance faces a memory and component crunch that management itself has called a “hundred-year flood,” one that will constrain iPhone, Mac, and iPad shipments in the current quarter. Apple investors responded by promptly erasing some $350 billion in market value. The stumble leaves Cook’s carefully cultivated image as a global supply chain genius looking frayed just a few weeks before he hands the keys to John Ternus.

Rich Duprey for 24/7 Wall. St.:
‎

The problem wasn’t the quarter Apple reported. It was the quarter ahead… Importantly, Apple isn’t warning that customers are disappearing. It is warning that it can’t build enough products to satisfy them…

Wall Street largely views Apple’s problem as delayed demand rather than destroyed demand…

In short, Apple’s latest earnings did not expose a weakening franchise. They exposed the limits of even Tim Cook’s supply-chain expertise during an industrywide shortage unlike anything the company has previously experienced.

The market, though, responded by focusing on the next three months. Smart investors should spend more time thinking about the next three years.

Apple still generates record quarterly results, maintains one of the world’s strongest consumer ecosystems, and serves a customer base that has repeatedly proven willing to wait — and pay — for its products. Regardless of whether memory prices remain elevated for another quarter or two, supply constraints eventually ease. When they do, delayed sales have an opportunity to flow back into Apple’s results.

‎
MacDailyNews Take: The stock’s ugly drop looks like a classic short-term overreaction. Demand remains solid; the real problem is temporary supply constraints. In just one month, Apple gets its first product-focused CEO since Steve Jobs. The fifteen-year operational chapter is finally closing.

Patience, Padawans. Backing up the truck.

---

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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

The post Tim Cook exits Apple not with a bang, but with a $350 billion whimper appeared first on MacDailyNews.

The latest financial numbers are in, and the Apple MacBook Neo is single-handedly pushing Mac sales to record levels. During its recent Apple Q3 2026 earnings call, Apple reported that Mac revenue jumped by almost 29 percent over the last quarter. This massive growth happened without the launch of any brand-new hardware during those three […]

The post John Ternus And MacBook Neo Give Apple A Huge Q3 Mac Sales Boost appeared first on The Mac Observer.

MacDailyNews presents live notes from Apple’s Q326 Conference Call with analysts starting at 2pm PDT / 5pm EDT today, July 30, 2026.

This stream is best experienced on an iPhone 7 or later, iPad (5th generation or later), or iPod touch (7th generation) using Safari on iOS 12 or later; or a Mac using Safari on macOS Mojave 10.14 or later. Streaming to your TV requires an AirPlay 2–capable device, or via AirPlay to an Apple TV (2nd generation or later) with the latest Apple TV software or tvOS. Other platforms may also be able to access the stream using recent versions of Chrome, Firefox, or Microsoft Edge (MSE, H.264, and AAC required).

Apple’s live conference call webcast will begin at 2pm PDT / 5pm EDT here.

Apple today posted record third quarter revenue of $109.4 billion, up a whopping 16% year over year, and quarterly diluted earnings per share (EPS) of $2.02, up a staggering 29% year over year (which included a favorable impact of $0.11 from tariff refunds).

Prior to Apple’s earnings release, Wall Street was looking for revenue of approximately $108.9 billion and diluted EPS of $1.89.

Live notes in chronological order:

• Awaiting start of conference call.

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Tim Cook: Good afternoon, everyone, and thanks for joining the call. Today Apple is pleased to report 109.4 billion in revenue—up 16% from a year ago, and a June quarter record. We were able to achieve this despite supply constraints, and sequential foreign exchange headwinds. We continue to see enormous customer enthusiasm for our most popular lineup ever, with iPhone revenue growing 22% from a year ago to reach a June quarter record. We saw so much excitement around the best Mac lineup we’ve ever had, growing a strong 29% to achieve a June quarter revenue record. Service is also set a June quarter record with 30.7 billion in revenue.

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 U.S., 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.

This year’s WWDC was a wonderful showcase of our latest innovations. We were tremendously excited to unveil the all-new Siri AI, a completely reimagined version of Siri that is profoundly capable, deeply personal, and integrated seamlessly across our platform. And we’ve been absolutely thrilled by the response from people who’ve been using Siri AI in the developer and public betas. The reviews from early users have been phenomenal, and it’s been so wonderful to hear from people who are excited about the capabilities we’ve built. And it underscores our philosophy that building AI that is private, and based on personal context, can change how users find information and get things done with our product in a way that truly enriches their lives. We really couldn’t be more excited about it, and we are feeling incredibly enthusiastic about the impact it’s going to have.

At WWDC, we also announced new tools to help parents keep kids safe online, and we were pleased by the overwhelmingly positive reactions. New child safety features like Browse and Time Allowances will help parents encourage kids to develop healthy digital habits. These new tools integrate guidance from leading clinical and child development research, including the American Academy of Pediatrics. Our goal is to make it easier for parents to manage what their children see, who they interact with, and how and when they can use their devices. We’re looking forward to bringing these new capabilities to users this fall, in addition to amazing new updates across our operating systems.

Now let me turn to the results for the quarter, beginning with iPhone. iPhone revenue for the June quarter was 54.3 billion dollars, up 22% from a year ago. We achieved June quarter records in every geographic segment and set a June quarter record for upgrading. According to IDC, we gained share globally during the quarter. As I’ve said before, this is the most powerful and most popular iPhone lineup we’ve ever had. More people are relying on iPhone every day for AI, powered by the outstanding performance of A19 and A19 Pro. Across the lineup, iPhone continues to deliver the performance, battery life, durability, and camera capabilities that people count on every day. Whether it’s the extraordinary camera system of iPhone 17 Pro and Pro Max, the remarkably thin design of iPhone Air, the balanced performance and durability of iPhone 17, or the exceptional value of iPhone 17e, there’s an iPhone for every customer.

Mac delivered its best June quarter yet, with 10.4 billion in revenue, growing an impressive 29% from a year ago, despite significant supply constraints. This revenue growth was driven by the incredible strength of our latest lineup, with MacBook Pro and the all-new MacBook Neo. According to IDC, we gained share globally. We also set a June quarter revenue record in developed markets and an all-time record in emerging markets, with particular strength in greater China where we had an all-time revenue record. In addition, we achieved all-time records for upgraders and customers new to Mac. With the power of Apple Silicon, the Mac lineup delivers outstanding power-efficient performance, massive memory bandwidth, and next-level AI capabilities. Mac continues to be the ultimate AI powerhouse, excelling at high throughput, on-device inference, and creation across a broad range of AI workloads. And we’re seeing customers increasingly put those capabilities to work, from using Mac mini as a powerful platform for agentic AI, to deploying clusters of Mac Studio systems to run frontier-class models locally. Across the lineup, customers continue to embrace the Mac family. MacBook Neo has been especially popular, with its distinctive design and excellent value resonating with customers around the world. And we’re continuing to work hard to meet demand. MacBook Air, the world’s most popular laptop, continues to deliver the portability and performance customers love with M5. And MacBook Pro, powered by M5 Pro and M5 Max, remains a go-to choice for professionals tackling the most demanding AI development and creative workflows.

And iPad, revenue was 6.2 billion for the June quarter, iPad continues to be the ultimate go-anywhere, do-anything device for students, entrepreneurs, and creators of all kinds, thanks to its incredible power, portability, and versatility. The addition of M4 to iPad Air has made it even more capable, delivering a significant performance boost for everything from personal productivity and immersive learning to advanced creative workflows. Together with the remarkable performance of iPad Pro, the amazing value and versatility of iPad, and the ultra-portable iPad mini, we’re offering customers our strongest iPad lineup ever.

Revenue for Wearables, Home, and Accessories was 7.9 billion dollars, up 6% from a year ago. We grew in every geographic segment and achieved a June quarter record for upgraders for Apple Watch. Our Apple Watch lineup brings together the most comprehensive set of health and fitness features we’ve ever had. We’re delivering useful features backed by research to enable users to better understand their health and well-being. It’s gratifying to receive almost daily reminders of the meaningful impact Apple’s health innovations are having for users all over the world, changing even saving lives. Meanwhile, we continue raising the bar across our AirPods lineup, whether it’s the immersive listening experience of AirPods Pro 3 or the premium listening experience and exceptional active noise cancellation of AirPods Max 2. And with live translation, powered by Apple Intelligence, people are crossing language barriers and connecting like never before.

As I mentioned earlier, we’re excited about the work we’re doing on the next generation of Apple Intelligence, including Siri AI and the AI features we’re developing across our platform. These experiences are intuitive and useful, while also deeply integrated in a way that’s personal and private, with the latest models running on device and on servers using private cloud compute. We begin laying the groundwork for users to have the best possible experience with AI when we introduce the Neural Engine in 2017. Ever since then, we’ve innovated and invested deliberately in silicon, systems, and scalable unified memory architecture designed with AI at their core. What sets Apple apart is the unique combination of massive unified memory bandwidth, industry-leading power-efficient performance, and deep on-device intelligence. All built around the customer experience from the ground up. The result is that Apple has created the world’s best hardware to experience AI, whether it’s using Apple Intelligence, including Siri AI, or third-party offerings. That’s why developers and researchers are increasingly using Apple devices to build ever more advanced tools and models.

Turning to Services, revenue was 30.7 billion dollars, a June quarter revenue record, and up 12% from a year ago, despite significant sequential foreign exchange headwinds. We also set an all-time revenue record in developed markets and a June quarter record in emerging markets. Apple TV continues to leave audiences spellbound, with new releases like Widow’s Bay and Cape Fear, alongside returning favorites like Silo and Sugar. And next week, we’re excited that Ted Lasso is back for his fourth season. It was wonderful to see Apple TV earn the industry’s top honors, adding Tony Awards this year to its Emmy, Grammy, and Oscar wins. We’ve reached that milestone faster than any streamer in history. We’re also looking forward to this year’s Emmy Awards, where Apple has landed a record 89 nominations, leading all networks in both the major drama and comedy series categories with three outstanding drama series nominations and three outstanding comedy series nominations. Widow’s Bay also stands out as the year’s most nominated new program, earning 19 Emmy nominations. And the 6.5 years since launch, Apple TV has earned more than 850 wins, and nearly 3,800 nominations. In time for the World Cup, we expanded Apple Sports to include more than 170 countries and regions worldwide, and made it easier than ever for fans to follow every moment of the tournament from the opening game to the final whistle. At the same time, we’re halfway through an unforgettable year of F1, and Apple TV subscribers have been tuning in all season to follow their favorite drivers and teams.

In Retail, we were pleased to announce Apple Upgrade this week for customers in the US, Apple Upgrade is a new hardware leasing program launched in partnership with Klarna and makes it even easier for customers to get their hands on Apple’s latest products with a plan that’s right for them.

In all of our work, we’re thoughtful and intentional in how we show up for our users and across our communities. That means innovating to protect user privacy with the next generation of Apple Intelligence, or helping parents keep kids safe as I mentioned earlier. In honor of global accessibility awareness day, we unveil new features to help users get more out of the products they use every day. New intelligent capabilities are coming to VoiceOver, Magnifier, Voice Control, and accessibility reader to make them more useful and intuitive. We’re also using on-device speech recognition to generate subtitles for video content without captions. And Apple Vision Pro is adding a feature for power wheelchair users to control drive systems using just their eyes. All of these features were born out of Apple’s longstanding commitment to ensuring that the benefits of technology are shared with everyone.

As we continue to develop new capabilities for users around the world, we’re also doing our part to invest in innovation close to home. Last year, we made a $600 billion commitment to the US over four years, and now, as we said before, we plan to reinvest the tariff refunds we’ve received into the US. We’re pleased with the progress we’ve already made advancing the American supply chain. Earlier this month, Apple announced a new agreement with Broadcom to design and produce custom silicon components and cutting-edge wireless connectivity technologies. The new multi-year agreement with Broadcom, which is part of Apple’s American Manufacturing Programs, is expected to exceed $30 billion. This marks our largest ever American Manufacturing Program commitment. It’s also an important step forward in our work to build an end-to-end silicon supply chain here in the US. We’re excited for the upcoming opening of the Apple Advanced Manufacturing Center in Houston. The center is located in a facility where we currently assemble advanced AI servers. Later this year, we’ll make Mac mini there too. The center will teach students supplier employees and business of all sizes the same innovative processes we use to make our products. The goal is to empower American manufacturers to take their work to the next level and strengthen the entire advanced manufacturing ecosystem.

We have an exciting fall ahead, and an incredible future beyond. Our roadmap is phenomenal, and we are so excited about the way Siri AI will enrich our users’ lives. Throughout all of it, we will remain guided by our North Star, building the best products and services to enable people to do magical things. It’s a special privilege to be part of people’s lives in lasting and meaningful ways, helping them to create, connect, and experience the world around them.

Kevan Parekh: Despite supply constraints. Product’s revenue was 78.7 billion dollars, up 18% year over year, driven by double-digit growth on iPhone and Mac. Both of which set new June quarter records. Our install base of over 2.5 billion active devices has reached another all-time high across all major product categories and geographic segments. Services revenue was 30.7 billion dollars, up 12% year over year. We set revenue records in every services category, including all-time records in cloud services and payment services.

Company gross margin was 50.1%, up 80 basis points sequentially. This included a benefit from tariff refunds, which had a favorable impact of approximately 2 percentage points. When you remove this favorable impact, you would have been at the midpoint of the guidance range we provided last quarter. Product’s gross margin was 40.1%, up 140 basis points sequentially. This also included a benefit from a tariff refunds I just mentioned. Which had a favorable impact of over 2.5 percentage points. Services gross margin was 75.6%, down 110 basis points sequentially, driven by a different mix.

Operating expenses came in at 19.1 billion dollars, up 23% year over year, driven by investments in R&D. Net income was 29.8 billion dollars. Diluted earnings per share was $2.02, up 29% year over year, and included 11 cents of favorable impact from tariff refunds. Operating cash flow was very strong at 34.4 billion dollars. All three of these metrics set June quarter records, even when excluding the tariff refund benefit.

Now, I’m going to provide some more details for each of our revenue categories.

iPhone revenue was 54.3 billion dollars, up 22% year over year, driven by the iPhone 17 family. We grew double digits in the vast majority of markets we track, and reached June quarter revenue records across both developed and emerging markets. The iPhone active install base grew to an all-time high and set a June quarter record for upgraders. According to a recent survey from WorldPanel, iPhone was the top-selling model in the U.S., urban China, the U.K., France, Australia, and Japan. We were thrilled with the response to the iPhone 17 family.

Customer satisfaction in the U.S. was recently measured at 99% by 451 Research.

Mac revenue was 10.4 billion dollars, up 29% year over year, a new June quarter record, driven by the strength of MacBook Neo and MacBook Pro. We 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 U.S., China mainland, and India. And in the U.S., customer satisfaction for Mac was recently measured at 95%.

iPad revenue was 6.2 billion dollars, down 6% year over year, driven by the continued difficult compare against the launch of the A16-powered iPad in the prior year. At the same time, the iPad install base reached a new all-time high and over half of the customers who purchased an iPad were new to the product

And 451 Research recently measured customer satisfaction at 98% in the U.S.

Wearables, Home, and Aaccessories revenue was 7.9 billion dollars, up 6% year over year, driven by strength in wearables and accessories. And we saw growth in both developed and emerging markets. The wearables install base reached a new all-time high. We set a June quarter record for upgraders on Apple Watch, and over half the customers purchasing an Apple Watch during the quarter were new to the product.

And in the U.S., customer satisfaction on Apple Watch was reported at 95%.

Our services revenue reached a June quarter record of 30.7 billion dollars, up 12% year over year, despite significant sequential FX headwinds. For the total services business, we saw double-digit growth in the vast majority of markets we track. We set records in every category, with June quarter records in advertising, app store, AppleCare, music, and video as well as all-time records in cloud services and payment services. We are optimistic about the long-term future of our services business.

With our large install base of over 2.5 billion active devices, we have incredibly strong foundation for growth opportunities. Our services continue to attract more customers, and we have now surpassed 1.5 billion in paid subscriptions. Both transacting and paid accounts reached new all-time highs in the quarter, with double-digit growth for both in emerging markets. And we continue to improve and expand our services offerings, from powerful updates to creator studio to exciting new features we’re bringing to services later this year, like splitting bills with Apple Cash using visual intelligence.

Turning now to enterprise and education, organizations are using the Apple Platform to drive AI innovation and empower the next generation of students. Starting with enterprise, Morgan Stanley has deployed over 20,000 iPhone 17 devices globally as part of a shift from employee-owned to corporate-owned devices, reliability and security. More companies are choosing Mac for on-device AI advantages, including lower costs, better performance, and enhanced privacy and security. At Disney, creative teams are increasingly turning to Mac for on-device AI workflows that reduce overall cloud token costs and keep their IP secure. And Credit Agrifal, France’s leading retail bank, is using on-device AI and MacBook Pro to streamline regulatory workflows, reducing manual processing time by over 80%.

Our newest addition to the Mac lineup, MacBook Neo, is reaching new enterprise users in many environments, from bank branches to retail storefronts. In education, MacBook Neo continued to accelerate adoption of Apple products. With many districts leveraging Apple Financial Services to deploy at scale. Pinellas County schools, one of the largest districts in Florida, is transitioning 25,000 students from Windows devices to MacBook Neo across its 18 high schools. In Washington, Peninsula School District 401 moved over 8,000 students from Chromebooks to MacBook Neo. And in Oklahoma, Midwest City, Dell City School District purchased over 6,000 MacBook Neos to become an all-Apple district for students. In fact, in the last quarter, about half of the MacBook Neo large purchases by U.S. education institutions displaced Windows and Chromebook devices.

Let’s turn to our cash position and capital return program. We ended the quarter with $147 billion in cash and marketable securities, and $84 billion in total debt. During the quarter, we returned $33 billion to shareholders. This included $4 billion in dividends and equivalents, and $25.8 billion in share repurchases.

As we move ahead, into the September quarter, I’d like to review our outlook, which includes forward-looking information.

Importantly, the color we’re providing assumes that global tariff rates policies and their application remain in effect as of this call, and the global macroeconomic outlook does not worsen from today.

We also expect our September quarter total company revenue to be impacted by two main factors: first, we expect foreign exchange to be a sequential headwind of about 2.5 percentage points to the year-over-year total company growth rate from the June quarter to the September quarter. Second, we expect the impact from supply constraints to increase significantly sequentially. The projected supply constraint in the September quarter affects iPhone, Mac, and iPad. As a result, we expect our September quarter total company revenue to grow between 9 and 11 percent year over year. On iPhone, we expect to continue to see high levels of demand, however, we do expect iPhone revenue to be impacted by these foreign exchange headwinds and supply constraints. Therefore, we expect a September quarter reported growth rate for iPhone to be mid-teens year over year. For services, we expect a September quarter year-over-year reported growth rate to be largely similar to what we reported in the June quarter, after removing the negative sequential impact of about 2.5 percentage points in foreign exchange that we just described.

We expect gross margin to be between 47 percent and 48 percent. This includes an expected benefit of approximately 1 percentage point related to tariff refunds. We expect operating expenses to be between 19.1 billion and 19.4 billion dollars.

We expect OIME to be around 350 million dollars, excluding any potential impact from the mark-to-market of minority investments. And our tax rate to be around 16.5 percent. Finally, today, our board of directors has declared a cash dividend of $27 per share, common stock, payable on August 13, 2026, to shareholders of record as of August 10, 2026.

Before we take questions, let me turn it back over to Tim.

Cook: Thanks, Kevin. Before we get into questions, I just wanted to take a moment to say thank you to all of you. From our shareholders, particularly our long-term shareholders, who have put their trust in us for so many years, to the analysts who have followed our company so closely. As you know, this will be my final earnings call, and John will lead these calls going forward. The transition is going seamlessly, and I am beyond excited for John to step into his new role and lead Apple into its next era. He is truly one of a kind, and there is no better person to take the helm of the company. As I’ve said, I couldn’t be more confident in his leadership, in our executive team, and in the extraordinary people at Apple who are determined to enrich the lives of our users all over the world. We have a bright future ahead, and I truly have never been more optimistic. So thank you all, and now Kevin and I will be happy to take your questions.

Analysts’ Questions

Q: Tim, best of luck. It’s been a pleasure working with you over the years. Maybe to start with, if I think about the 9 to 11 percentile growth that’s guided for September, it’s about 500 basis points or so deceleration versus what we’ve seen in, you know, really in June quarter, even through this year, I would say. Can you just talk about how much of this decel is only supply constraint versus other factors like FX? And if you just flesh out what these supply constraints are, the broadening beyond these advanced SOCs you talked about last quarter as well.

Parekh: Yeah, this is Kevin. How are we doing? Why don’t I start with just kind of describing the sequential change, and then I’ll let Tim jump into kind of a bit more color on supply constraints.

So I think I mentioned in my declarative remarks, we expect the September quarter total revenue to grow by 9 to 11 percent year over year.

And then we expect that to be impacted by two main factors. The first, when we look at kind of going from the June quarter to September quarter, we expect foreign exchange to be a sequential headwind of around 2.5 percentage points to the year-over-year total company growth rate.

And then the second impact is that the impact on supply constraints is we expect that to increase significantly, when we go sequentially from June to September. And that’s projected supply constraint in the September quarter will affect the iPhone Mac and the iPad. And really, when you combine those two factors, you get pretty close to the June overall total company growth rate.

Cook: Yeah, Tim, first of all, thank you for your comments. During the June quarter, we did experience supply constraints primarily on the Mac and to a lesser extent on iPhone and iPad. These were driven by very high levels of demand and, as you’ve said before, we are seeing less flexibility in the supply chain than normal. And the constraints were primarily driven by the availability of advanced nodes that are SSDs or produced on.

If you look forward then into the current quarter, the September quarter, we are continuing to expect high levels of demand. However, with less flexibility in supply chain, we expect the impact from the supply constraints to increase significantly sequentially.

The projected supply constraints in the September quarter as Kevin said affect iPhone, Mac, and iPad.

And so we’re seeing some very significant constraints currently with limited flexibility in the supply chain to remedy it.

Q: Got it. This is really helpful. Thanks a lot for that. And then, Tim, I just have a memory question for you. You know, Apple has historically I think done a really excellent job about delivering capability and utility to customers without really making them pay disproportionately more. The sizing memory inflation seems to challenge that equation for you folks right now. And, you know, there were reports that suggest that you’re seeking greater sourcing flexibility for memory. Can you just talk about, you know, is this sourcing options really about ensuring that you have supply and the way to mitigate memory inflation? Or is it more to preserve the value proposition for your customers? Just any light you could shed on this would be helpful. Thank you.

Cook:Yeah, let me back up and talk about memory in general, because I know this is a subject on many of your minds. If you look at the, as I’ve said on the last call, we paid more for memory in the March quarter than the December quarter. And then, as I alluded to last quarter, we expected to pay significantly more in the June quarter than the March quarter. And 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’re able to offset partly by a few factors.

And let me walk through kind of what they are. The first is, as you would expect, we have a benefit from some carry-in inventory in the September quarter. However, we believe this we’ll see decreasing benefit from this over time. Beyond the September quarter.

The second is, we’re expecting lower costs on certain non-memory components. That are in our bond. And then if you look beyond September, we see the market pricing for memory continuing to increase which could drive an increasing impact on our business. And we’re continuing to evaluate this. In terms of the sources of supply, you know, primarily the DRAM market has three suppliers. And obviously, if there were more suppliers, that would be good. And it would help us on the supply side and perhaps the pricing side. It’s unclear on the pricing side. But it could help on the supply side. And so we’re evaluating all options.

Q: First, on the Apple upgrade program, could you talk a little bit about, you know, the expected adoption rates across your, you know, 2.5 billion device install base in success? Do you see it shortening the replacement cycle for iPhone or, you know, also having an equal impact to Mac and iPad, which may have not as benefited from device subsidies in the US like iPhone has historically? Thank you.

Cook: If you look at the upgrade program, what it’s all about is making it easier for customers to get their hands on our latest product. With a leasing plan that’s right for them. And of course, as you know, the residual values on Apple products are generally much higher than the residual value on several of our competition. And so it’s a way to get into a product on a fairly affordable basis for particularly for those customers who want to upgrade on some kind of schedule. And so we’re very excited about it. It is offered in our retail stores and so it’s not widely offered in all channels. And so we’ll see what the customer uptake is. But the early feedback on it is quite positive.

Parekh: Yeah, Michael, I’ll just mention that it’s only available in the US right now as well.

Q: Great. Thank you. That’s very helpful. And then, my second question just on iOS 27 and Apple Intelligence. You know, when is the public beta early this month? Could you talk about, you know, learnings from the public beta? Will, you know, the new Siri AI be a demand driver for iPhones this holiday? You know, how does the Apple Intelligence usage to date in the open beta inform how you’re thinking about compute costs and the ability to report. Some of those costs through iCloud Clients? Thank you.

Cook: Yeah, thank you for that. First of all, we are off the charts excited about Siri AI. We had a great reception from WWDC. We released the developer beta immediately after the keynote. The developer feedback has been overwhelmingly positive. The feedback from reviewers and so forth have been overwhelmingly positive. We released it to the public for a public beta a few weeks ago. And the continued feedback is really, really great. I think it’s a very big idea to have AI that’s private that’s based on your personal context and that’s integrated across the operating system. And so we couldn’t be happier with how things are going. In terms of the what it means for compute cost, it’s obviously early going for us. And so I don’t want to say that we have a complete plan for that. We do. Believe there will be people that want to use it a lot. And so we will have some kind of upgrade possibilities on iCloud Plus where people can buy up the stack on iCloud Plus. And we’ll see how the pickup for that is. But we could not be more excited about where the product is.

Q: I wanted to ask about the supply constraints again. And I think people are just trying to make sense of it a little bit this way, is that, you know, the street had you at 12% growth for the quarter of September. And so, you know, you could argue that to get to the 10% you guided, that’s just the FX. And then in the first quarter, which is December, the street had you decelerating quite a bit, you know, to like 8% to 9%. So I think, you know, what we’re struggling with after hours here is how much do you supply constraints really hit you in December? And, you know, impact that? Because, you know, the streets did a pretty good job of give us there as you see it, Tim, and we’d really appreciate it. Thanks.

Cook: Let me talk about the constraints a little more and then Kevin can weigh in on the guidance for revenue. As I had mentioned before, the primary issue is advanced nodes that we run our SOCs on. That’s the primary supply constraint now. And the root cause of it is not a is not a regular supply issue. It’s a demand forecast issue, to be candid, where the iPhone and the Mac are both doing remarkably better than we thought they would do. And we had high expectations. So it wasn’t that our expectations were low, but as you can see, from iPhone’s growth being 22% and Mac’s growth at 29% and the iPhone is 22% year to date as well, that these are extraordinary numbers. And the supply chain just has less flexibility in it than normal. So we’ve been pulling supply ahead. And at some point, there’s a limit to that. And so we’ve got a quarter that we’re going to be scrambling on the supply side, essentially. And Kevin, you want to add on the revenue guidance?

Parekh: Yeah, thanks, Tim. Ben, let me jump in here. And that the dynamics Tim mentioned, combined with the foreign exchange impact I mentioned earlier, sequentially, is really what’s built into the 9% to 11% guidance we’re giving for the September total company revenue year-on-year growth rate. Beyond September, we’re not providing any color at this point. You mentioned December. So we’re not providing any kind of color or guidance beyond the September quarter.

Q: Okay. And then, you know, if I could just ask, and you guys, you know, know what’s in the press all the time, but there’s this little company that is also building a fab in Arizona. That’s, you know, you guys have been speculating you guys could work with that could potentially alleviate some at least your silicon constraints. Is there any possibility that you guys broaden out your silicon providers in a reasonable time frame to alleviate these so we feel better about supply?

Cook: Yeah, let me stress again. This isn’t a partner or supplier issue. This issue is an incredibly strong it’s a great issue in some ways. It’s an incredibly strong iPhone and Mac product cycle that has really yielded demand beyond our expectation. In Arizona, we do source over 100 million components this year out of Arizona. And so we have it is part of our $600 billion commitment to the US. And we could not be more pleased with how that fab has ramped and is producing for us.

Q: You know, I want to maybe focus on pricing here, Tim, and kind of unprecedented for you to take pricing in the ways that you have. I guess two related questions is just, you know, is it your intention to pursue some of these multi-year LTAs with your suppliers just to ensure access to supply at pre-agreed prices? And, you know, when you approach product pricing in this environment, is it your intention to protect, you know, product gross profit dollars? Is it your intention to protect product gross margins? We’d just love the kind of thought process behind the pricing. And then I’d put follow-up, please. Thank you.

Cook: Yeah. On the pricing front, you know, we reluctantly raise prices, I would say. We did it because we’re in what I would characterize as a 100-year flood on the memory pricing. With exponential increases in memory prices, and so that was the that was the rationale for it. In terms of our philosophy on dollars or percentages, we look at units revenue and margin. And then come to a business judgment as to how to handle that. And so it’s not a mathematical formula that gets us to a specific result or just looking at one dimension of that. We look at all three dimensions and think about it over the long term. Instead of a, you know, a 90-day clock.

Q: And then just maybe a quick follow-up. I guess, Tim, or Kevin, just 12% services growth was just a bit below your guidance, I imagine, FX maybe played a role there.

I think the fiscal forecast guidance assumes, you know, another deceleration. I think the math would imply below 10% year-over-year as reported. So can you maybe just help us understand, you know, the kind of function factors underlying that deceleration? And if that’s App Store, which I think some third-party data sources would suggest, you know, is that a function of AI maybe reprioritizing time away from parts of the App Store? Just want to make sure we understand the moving pieces on services, please. Thank you so much.

Parekh: So let’s walk from kind of the 16% in our fiscal second quarter to kind of the 12% that we just talked about in the June quarter that you referenced. And we look at that, you know, relative to the March quarter, foreign exchange was the main driver for the change in the year-on-year growth rate sequentially. And also a couple of other factors to keep in mind. One is we had that the applicable release of F1, which is one of the highest grossing sports films in history, and this year we didn’t have it the applicable release. So that had a favorable impact on both the June quarter and also the September quarter and the year ago.

We also sort of had some factors that impacted the performance of the App Store. We did see some headwinds in mobile gaming. For the growth in categories like cloud. This is video, payment services, and advertising, and we set revenue records in every category with June quarter records in advertising and the app store, AppleCare, music, and video. We’re Apple TV, viewership reaching all-time high in the quarter. And then we also set all-time records in cloud services and payment services, where Apple Pay saw a record level of users in both developed and emerging markets.

And services also had a June quarter record in emerging markets, and we outlined in the prepared remarks our services continue to attract more customers, and we now have surpassed 1.5 billion in paid subscriptions, and our transacting and paid accounts hit an all-time high with double-digit growth in both those two and emerging markets.

So I think when I step back, if I look at kind of how we landed versus our expectations that we had outlined, in the March quarter, for the June quarter, I would say that our kind of we roughly met our expectations but we did see a bit more softness on mobile gaming in the app store.

As we go into the September quarter, what I would say is we expect foreign exchange will continue to be a headwind, and in fact, this is a theme that’s impacting the services business more so than a total company, we expect foreign exchange to drive about a 5 percentage point headwind to the year-on-year growth rate from the March to September quarter. So if we look at the sequential change in the June quarter, a 12% services we reported, to what we’re guiding for the September quarter, we are going to see another 2.5 point sequential headwind.

Q: I guess I want to maybe tether with the memory pricing dynamic, but as you look at the demand that you’re seeing right now, I’m curious of how you assess whether or not you’ve seen any pull forward of demand, either from the consumer or even the enterprise and education market, and whether or not you’re factoring that into your views as we look forward at all.

Cook: On you’re talking about on iPhone, I assume, in general, we’ve been running at this 22% growth rate for the last while, for this cycle has been a 22% increase year to date. And so it’s not obvious I would say that. It’s not obvious in the data that what you’re asking is true. Obviously, we’ve now had to increase prices on iPad and Mac, and the price elasticity there is just too early to come to a definitive conclusion of what happens there. Because it takes a little while for the channels to adjust since there’s channel inventory, and it takes a while for the consumer to respond. And so we’ll understand that more in the weeks ahead.

Q:A very helpful. And then as a quick follow-up, maybe more longer-term thematically, is AI proliferates towards the edge and more consumers utilize AI, I’m curious, Tim, if you see AI opening up additional opportunities. I can appreciate that you’re not going to give us specifics, but do you see other kind of addressable markets evolving from AI over time?

Cook: Yes. I think there are enormous opportunities for Apple moving forward in AI. And I’m so excited about Siri AI and kind of where it is and where it’s going, and I’m excited about the feedback that we’re getting there. And of course, the ability to run some percentage of requests on-device is also very strategic and sort of a competitive weapon, if you will. So I could not be more excited about the opportunities there.

Q: For my question, first on Siri AI, do you expect that Siri AI would change the capital intensity of Apple despite the fact that you have the ability to do so much differentiated workloads on-device and you have this distributed compute? You do have some requests that go into the backend, both in your own first-party cloud as well as third-party. So is it right to think that the capital intensity of Apple will change in the future because of Siri AI and Apple follow-up?

Cook: We use a hybrid model, as I know Kevin has reviewed. We reviewed earlier and so we use some third-party cloud and we do our own data centers. And so there will be a mix but generally speaking, as you know, we have been growing our op-ex and spending more in AI in general. And quite a bit more. And there are other locations on the P&L other than op-ex, like OCOGs and etc., that also have AI expenditures. And so we’ll see what Siri AI does from the cost side of it, but there’s also the ability when people use it a lot for them to move up on an iCloud plan as well. And so what the balance of that is, is a bit uncertain at the moment.

Q:And John, since you’re on the call, congrats on the new role. I’d love to get maybe just a high-level take from you if you think that the competitive landscape here is changing especially as you hear about potentially companies like OpenAI building an AI-enabled competitive device or SpaceX AI potentially having a phone. That would bypass some of the typical carrier tax. Just would love your high-level thoughts on how you see the competitive landscape evolving and Apple’s solution there.

Ternus:Well, thank you for asking. I guess I would just say reiterate what Tim said. There is so much opportunity for us with everything that’s happening in this space. And we’re just really focused on our plans and very excited about it.

Q: If I go back to WWDC when you announced Siri AI, you also did mention along with the rollout that probably we won’t have the initial rollout in China and Europe. So just wanted to get your updated thoughts on that front and any more color in terms of what hurdles you need to cross to be able to launch it in those regions and have a follow-up. Thank you.

Cook: Thanks for the question. Let me take them individually.

If you look at the EU, we’re working closely with the commission. Obviously, our complete desire is to launch everything, everywhere, at the same time. That’s always the philosophy that we have. We have not been able to do that in the European Union. But we’re working closely with them to try to get to something that would allow us to offer Siri AI there. It is offered or will be offered for the Mac there. Because the Mac is not covered by the same regulations as the iPhone and the iPad. So, we’re working with them and hope to reach some sort of solution.

If you then look at China, last week we received approval to ship sort of the original features of Apple Intelligence. Things like cleanup and so forth. And so we’re working now through the rollout of those and there will be more work required down the road for the Siri AI. But we’re at the front end of that.

Q: Okay. Great. And for my follow-up, Kevin, just not to beat sort of this FX thing to death here, but if I look at the gross margin, you delivered 48% in the quarter without the tariff refund benefit. You’re guiding to like 46 and a half. Any way to walk us through the sequential driver there and how much of that is FX impacting it versus maybe like increased commodity cost, etc., that’s driving that sequential quantitation? Because it does seem a bit more atypical than your normal sort of years.

Parekh: So let me walk through kind of what’s impacting our gross margins. We look at our gross margin change from the 49.3 we had total company level for the March quarter and as you mentioned, the 48.1 adjusted to the tariff refund in the June quarter. That 120 basis point change if you look at the drivers of that, more than 100% of that can be explained by the memory cost change that Tim outlined. While FX was a factor, really the main driver was really the memory cost impact. And as Tim outlined earlier, when we talked a bit about the dynamics around the memory cost, we did see some partial offsets from things like the benefit of carrying inventory, reduction in non-memory component costs, and some variable mix. We are seeing the same dynamics when you go from the 48.1 that we printed in the June quarter to the 46.5 midpoint you referenced of our range without the tariff refund impact.

That 160 basis point change is also more than that is explained by the change in memory. Costs. And we had some partial offsets again from things like the benefit of carrying inventory, lower cost non-memory components, and as well favorable mix. I think that FX was a pretty minimal impact when you look at that versus the memory. And so generally the sequential change from the March quarter to the 46 and a half you referenced is really driven by memory.

END OF CONFERENCE CALL

• AAPL After hours: $310.81, -22.62 (-6.78%) @ 6:01:06 PM EDT

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I continue to have problems with Contacts in Tahoe. The latest issue is that the Messages app constantly displays a banner showing that one of my contacts has updated her poster. I don’t want to use it; I want to keep the photo that I chose. But clicking the × button does not dismiss the New poster available from [Person] banner. It remains anchored atop that conversation.

Sidenote: I hate that it wants me to click Update Contact but that the image shown is the old photo. How can I commit to the new photo without even knowing what it looks like? How can I undo if I don’t like it?

Sidenote 2: I’m also getting repeated Siri found an event banners in Messages, but they go away after about three clicks. They’re extra annoying because (unlike above) they animate in again each time I dismiss them, and they’re for events that are already on my calendar.

I thought maybe I could fix things by going into the Contacts app. Unfortunately, the Contact Photo & Poster button there is inoperative. Sometimes it flickers when I click it. Sometimes nothing happens at all. Sometimes after clicking the button it will open the photo chooser sheet for the next contact that I view.

I just want a single setting to let me choose my own photos. I never want to use a poster or be notified that one has changed.

Ben Lovejoy:

Ternus, said he was committed to building on the company’s momentum in the entertainment business when he takes the helm of the iPhone maker in September […]

“I think we have such tremendous momentum right now in ​Apple TV,” Ternus told Reuters on the red carpet at the premiere of the fourth season of Ted ​Lasso. “There’s so many amazing shows, so many amazing characters and stories, and so we’re just going to keep building on the momentum.”

Have we seen any indication yet that he cares about software?

Previously:

• Apple Financial Statements: Products vs. Services
• Contacts in Tahoe
• Turning Off iOS 17 Contact Posters

Apple’s Tim Cook and incoming CEO John Ternus stepped onto the red carpet together at the Ted Lasso Season 4 premiere, matching in navy suits and “Believe” pins while reflecting on a smooth leadership handoff and the bright future of Apple TV.

In a joint interview with Deadline, Cook expressed excitement over Apple TV’s record 89 Emmy nominations, while Ternus shared his enthusiasm for the show’s return and the momentum behind Apple’s content slate.

Nellie Andreeva for Deadline:
‎

“We’ve been at it for seven years, and it feels like every year is better than the year before,” Cook said. “Now we’ve really hit our stride, and I couldn’t be more excited about where we’re going. We have 89 Emmy nominations, we’re so excited. I hope you’re watching Widow’s Bay, it’s a terrific show, and now tonight to bring Ted Lasso back, it’s marvelous.”

Cook announced his pending departure as CEO in April.

Turns out Ternus is a Ted Lasso fan too.

“I love Ted Lasso, I am so excited to have all the characters back, to have the story back,” he said. “It’s just such an amazing story, such an amazing message of optimism and hope and believe.”

As Ternus prepares to lead Apple, what ideas does he have for the company’s streaming service? Is he planning to make some changes? As a big racing fan, adding more racing, perhaps, to Apple TV’s Formula 1 coverage?

“I am just so excited about the momentum we have,” he said. “There’s so much great content on Apple TV, and now is just the perfect time for us to keep the momentum up, keep bringing in incredible storytellers and creative folks to keep making it better.”

“This year’s been amazing with Pluribus and Widows Bay. Right now, I’m watching Silo and Lucky,” Ternus said.

Added Cook, “I love Severance, I can’t wait for it to come back. I’m watching Widow’s Bay, as I mentioned. I love Pluribus. Silo is fantastic,” Cook said.

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MacDailyNews Note: Apple TV is available on the Apple TV app in over 100 countries and regions, on over 1 billion screens, including iPhone, iPad, Apple TV 4K, Apple Vision Pro, Mac, popular smart TVs from Samsung, LG, Sony, VIZIO, TCL and others, Roku and Amazon Fire TV devices, Chromecast with Google TV, PlayStation and Xbox gaming consoles, and at tv.apple.com, for $12.99 per month with a seven-day free trial for new subscribers. For a limited time, customers who purchase and activate a new iPhone, iPad, Apple TV 4K or Mac can enjoy three months of Apple TV for free.

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Apple is scheduled to report fiscal third-quarter 2026 results (the June quarter) after the market close on Thursday, July 30th, followed by its usual conference call. The release carries extra weight: it is expected to be Tim Cook’s final earnings call as CEO before hardware engineering chief John Ternus assumes the role on September 1, with Cook moving to executive chairman.

Consensus Estimates

Wall Street is looking for solid double-digit growth. Consensus forecasts (drawn from roughly 27–31 analysts) call for:

• Revenue of approximately $108.9 billion, up about 16% from $94.0 billion a year earlier.

• Diluted EPS of $1.89, up roughly 20% from $1.57 in the year-ago quarter.

These figures sit comfortably inside management’s prior guidance of 14–17% year-over-year revenue growth and a gross margin range of 47.5–48.5% (down from 49.3% in the March quarter as higher memory costs begin to weigh). Operating expenses are expected in the $18.8–$19.1 billion range.

Zacks consensus is nearly identical at $108.8 billion in sales and $1.88 EPS. Apple has beaten estimates in recent quarters, with an average earnings surprise of more than 7% over the past four reports.

Segment Expectations

• iPhone remains the primary driver. Analysts project iPhone revenue near $53 billion (some estimates range $53–$55 billion), representing roughly 19–23% growth from $44.6 billion last year, fueled by the iPhone 17 cycle, healthy upgrade activity, share gains, and a richer mix of higher-priced Pro models.

• Services, Apple’s high-margin growth engine, is expected around $31.4 billion, up from $27.4 billion a year earlier (mid-teens percentage growth). Investors will watch for any commentary on Apple Intelligence adoption and subscription momentum.

• Mac, iPad, and Wearables are expected to contribute more modestly, with some notes of supply constraints on certain Mac models.

Analyst Views

Several firms are slightly ahead of consensus. Goldman Sachs expects revenue of $110.1 billion (17% growth) and EPS of $1.93, citing outperformance in iPhone and Mac plus better margins; the firm raised its price target to $370. Bank of America models about $109 billion in revenue and $1.89 EPS. UBS is more cautious at $107.8 billion revenue and $1.84 EPS.

Key focus areas on the call are expected to include:

• Sustainability of iPhone demand into the September quarter and the upcoming product cycle.

• Gross-margin trajectory amid elevated DRAM and NAND costs.

• Progress on AI features (including the recent clearance for Apple Intelligence in Greater China) and any early metrics on usage or monetization.

• Forward guidance, especially for the September quarter, and any color on the leadership transition.

• Capital return, inventory levels, and China trends.

Apple stock has rallied strongly in 2026 (up roughly 24% year-to-date in some tallies), leaving the shares trading at a premium valuation — near 35–38 times forward earnings by some measures. That leaves limited room for disappointment. A clean beat paired with confident guidance on continued double-digit growth and stable margins would likely be well received; any soft outlook or sharper-than-expected margin pressure could prompt a more cautious reaction.
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MacDailyNews Take: In a nutshell, analysts expect another strong quarter driven by iPhone and Services, but the real test will be whether Apple can sustain the momentum while navigating higher component costs as new CEO John Ternus, blessedly a product guy per se, prepares to take the reins. Apple Upgrade should help in this respect.

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Incoming Apple CEO John Ternus promises that the Apple TV streaming service will keep growing under his leadership.

(via Cult of Mac - Your source for the latest Apple news, rumors, analysis, reviews, how-tos and deals.)

Apple’s incoming CEO, hardware chief John Ternus, said he was committed to building on the company’s momentum in the entertainment business when he takes the helm of the company on September 1st.

The technology giant began offering original TV series and films through the Apple TV+ streaming app in 2019. The company found success with Oscar best picture winner “CODA,” box-office blockbuster “F1” and Emmy-winning shows such as “The Studio” and “Ted Lasso.”

Last year, Apple dropped the plus sign and renamed the service Apple TV.

“I think we have such tremendous momentum right now in Apple TV,” Ternus told Reuters on the red carpet at the premiere of the fourth season of “Ted Lasso.”

“There’s so many amazing shows, so many amazing characters and stories, and so we’re just going to keep building on the momentum,” Ternus said

Ternus stood next to outgoing CEO Tim Cook, who said he is sharing his insights about the entertainment business as part of the leadership transition.

“Our role is to be the best. That’s our lane,” Cook said of Apple’s entertainment strategy. “We’re not about the most. There are… other companies that do that. But we’re about the best, and I feel like we really hit our stride in providing that.”

Cook said Apple was open to future partnerships in the entertainment realm if the company feels it can bring a particular expertise. He pointed to the arrangement with the Formula 1 racing league.

For the Brad Pitt movie “F1,” Apple built custom cameras to help make audiences feel like they were inside a race car. F1 races are now shown exclusively on Apple TV in the United States, and the company provides leaderboards, updates and other coverage on Apple News and other apps.

“We’ll do things that we can bring something unique to, where we can innovate in a way that others might not be able to,” Cook said. “I feel like we’re really doing that with F1. We’re so excited about how we’re doing there and the viewership numbers that we’re getting. So more things like that would be possible.”

MacDailyNews Take: Everyone’s on the same page: Last month, senior Apple executive Eddy Cue told Reuters the company’s goal was to offer “better and more” TV shows and movies on Apple TV streaming and in theaters.

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With Apple shares trading near all-time highs around $326, fresh speculation about a potential stock split has resurfaced. While the company has not announced any plans, the upcoming leadership transition adds a new dimension to the discussion.

Apple announced in April 2026 that Tim Cook will step down as CEO on August 31 and transition to Executive Chairman, with John Ternus (currently Senior Vice President of Hardware Engineering) taking over as CEO effective September 1, 2026. This marks the most significant leadership change at Apple in over 15 years.

Could the CEO Transition Influence a Split?

Analysts and investors are debating whether the smooth handover could accelerate or delay a split:

• Potential catalyst: A new CEO often seeks early wins to build momentum. A stock split would be a low-risk, high-visibility move that signals confidence and appeals to retail investors — especially as Ternus begins his tenure.

• Likely timing: Most observers expect any decision to wait until after the transition settles (late 2026 or 2027), once Ternus has established his priorities around AI, hardware innovation, and Mac refreshes.

• Continuity advantage: With Cook remaining as Executive Chairman, the board is expected to maintain strong oversight, reducing any perceived risk around major shareholder-friendly actions.

Apple has not split its stock since the 4-for-1 in August 2020. With fractional-share trading now widespread, the urgency is lower than in the past, but a split could still broaden accessibility and create psychological tailwinds.

Apple’s stock has performed strongly in 2026, rebounding from a weaker 2025 and recently approaching record levels. Solid services growth, ongoing buybacks, and AI/hardware momentum (including upcoming Mac lineup overhauls) have supported the rally — all without a split.

Historically, Apple splits (1987, 2000, 2005, 2014, 2020) have often coincided with periods of optimism and growth. A future split under Ternus could similarly project confidence in the company’s long-term trajectory.

MacDailyNews Take: The Cook-to-Ternus transition is unlikely to hinder a stock split and could even encourage one as an early signal of confidence under the new leadership. That said, Apple tends to be deliberate, so any move would likely prioritize substance over optics.

While a split (even a modest 2-for-1 or 3-for-1) could project optimism and attract more retail interest, Apple’s fundamentals (robust cash reserves, ongoing innovation, and execution on AI/hardware roadmaps) appear to be driving the stock’s current momentum without one. Splits are cosmetic in terms of intrinsic value but have historically aligned with growth phases. Investors should watch for any board signals or SEC filings, but the lack of a split hasn’t held back the rebound in 2026.

Apple’s split history:

• June 16, 1987: 2-for-1
• June 21, 2000: 2-for-1
• February 28, 2005: 2-for-1
• June 9, 2014: 7-for-1
• August 31, 2020: 4-for-1

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Apple is preparing a comprehensive refresh of its entire Mac ecosystem, with new models of the MacBook Air, iMac, MacBook Pro, a new “Neo” variant, Mac mini, and Mac Studio slated for release across this fall and into next year.

According to Bloomberg News‘ Mark Gurman, the technology giant aims to meet surging demand for powerful AI-capable machines by updating every Mac it currently sells. The overhaul includes long-awaited desktop refreshes and several laptop redesigns, positioning Apple to better compete in an increasingly AI-driven computing landscape.

The rollout begins later this year with an entry-level 14-inch MacBook Pro powered by the M6 chip and refreshed iMac models. These updates address pent-up demand for modern desktops and more affordable professional laptops.

Further ahead, Apple plans higher-end 14-inch and 16-inch MacBook Pro models featuring OLED displays and touchscreen capabilities, expected in late 2026 or early 2027 with M5 Pro and Max chips. New MacBook Air variants, including potential OLED versions, and a more powerful “MacBook Neo” with expanded RAM are also in the works.

Desktop users can look forward to updates for the Mac mini and Mac Studio, though some launches may face minor delays due to memory shortages driven by strong AI component demand.

This broad hardware push comes as Apple seeks to leverage its Apple Intelligence features and next-generation chips to drive sales amid a competitive market. The company is also introducing an “Apple Upgrade” leasing program in partnership with Klarna to make switching devices easier for customers.

MacDailyNews Take: With John Ternus stepping into the CEO role (effective September 1, 2026), Apple appears to be rediscovering a sharper product-first mindset. Ternus, long seen as a hardware and design deep-diver with decades of hands-on experience across iPad, Mac, and Apple Silicon development, brings a different emphasis than the iterative, operations-focus that defined the Cook slog.

The benefits to Apple Inc. and Apple device users of again having a product-focused CEO at Apple’s helm are already occurring!

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John Gruber (Mastodon, 2):

Some of [Cook’s letter] remains true, but has lost some truthiness — and truthiness matters. But some of it is no longer true, period. It’s no longer just “one small part” of Apple’s business that serves advertisers. Here in 2026, search results in the App Store not only show paid ads — frequently for casinos — but the search results are visually dominated by paid ads now that Apple has added a second ad to results. Apple News+ is a paid subscription that offers a genuinely great value for the number of paywalled publishers whose content it includes, but articles on the News app tend to include the weirdest AI-generated ads on the Internet. (How many young blond women am I supposed to believe need hearing aids?) And — at this writing, still “coming soon” — Apple is launching ads on Apple Maps. Apple Maps remains free of charge to use, so according to Tim Cook, we’re not the customer. We’re the product. Or, if you prefer, our frustration is the product.

[…]

The ratio of ads to organic results in App Store search — especially when measured in screen area — is clearly not aligned with Cook’s 2014 statement that “Our software and services are designed to make our devices better. Plain and simple.” Obviously not. App Store search today is designed primarily to generate more revenue for Apple. That’s not criminal, but it’s a change.

[…]

What gave Tim Cook’s privacy letter heft in 2014 wasn’t just the clarity of its plain language, but the fact that you didn’t have to take his word for it that the ads Apple showed you respected your privacy, because Apple didn’t show you ads in 2014. Apple today can’t say that.

[…]

John Ternus should return Apple’s privacy policy to its 2014 clarity. The trust Apple would earn from such a move would far out-value whatever revenue these ads pad to their already hefty and ever-increasing quarterly Services numbers.

I wish that were the case, but I fear this is kind of a Hotelling’s Law situation, where Apple can get most of the benefit by being just slightly better on this axis. Where else do its customers have to go?

Jeff Johnson (Mastodon):

In the second fiscal quarter of 2018, services generated $9 billion in revenue (net sales), whereas in Q2 2026, that amount had grown to $31 billion! In this blog post, I want to focus on understanding the relative financial importance of products and services for Apple.

[…]

In 2025, services were 42% of Apple gross margin. How does 26% of net sales become 42% of gross margin? The explanation is that services have a much lower cost of sales. The products gross margin was 37% of products net sales, while the services gross margin was an astonishing 75% of services net sales. In other words, Apple services are almost pure profit!

Does this 75% account for TV and movie production costs?

With persistent general inflation, consumers do not have unlimited money to spend on Apple products. At least in the near future, it’s reasonable to question how much further room is available for growth in profits from Apple products. To satisfy the demands of investors, Apple executives including CEO-elect John Ternus may be forced to rely even more than before on growth in services, which do not face as much pressure on cost of sales as hardware products.

Previously:

• Apple Services Price Hikes 2026
• Apple Hardware Price Hikes
• App Store Personalized Recommendations and Keylogging
• Apple’s Q2 2026 Results
• A Letter to John Ternus
• Ads in Apple Maps
• Blurring App Store Ads and Search Results
• Apple Services in 2025
• More App Store Ad Spots
• Apple Services Price Hikes
• Nowhere Else to Go

Apple is quietly shopping for AI chip companies. According to a new report from The Information, the company has been approaching chip startups and consulting with bankers about potential acquisitions — a notable shift for a firm long known for its reluctance to make big hardware buys.

The move comes as Apple grapples with limitations in its current AI infrastructure. Its Private Cloud Compute servers, which power parts of Apple Intelligence, currently rely on internally designed M2 Ultra chips. These have proven insufficient for handling larger, more demanding AI models.

The Siri Overhaul Problem

One concrete example stands out: Apple has been working on a major Siri overhaul powered in part by Google’s Gemini models through a partnership. When engineers tried running these advanced models on Apple’s own servers, the M-series hardware fell short. As a result, more complex Siri tasks are now routing through Nvidia GPUs hosted in Google’s cloud infrastructure.

This dependency clashes with Apple’s long-standing preference for controlling its own silicon and protecting user privacy through on-device and Private Cloud Compute processing.

Baltra Delayed

Internally, Apple has been developing its first dedicated AI server chip, codenamed Baltra. The company had originally targeted a 2026 launch, but the timeline has slipped. Baltra is designed as a purpose-built server ASIC (with Broadcom contributing key networking and interconnect technology) to reduce reliance on third-party GPUs for cloud AI workloads.

The reported pursuit of acquisitions suggests Apple wants to accelerate progress on its next-generation server silicon — either by bringing in specialized talent and IP or by acquiring teams that have already solved similar challenges.

A Rare Shift in M&A Approach

Apple has historically avoided large acquisitions, preferring to build technology in-house. Its most recent notable deal was the January 2026 acquisition of Israeli audio AI startup Q.ai (reportedly valued around $2 billion). With roughly $45.6 billion in cash and cash equivalents as of late March 2026, Apple certainly has the financial firepower if it chooses to move.

This new interest in chip startups marks a pragmatic acknowledgment that the AI hardware race — particularly in data center-scale inference and training — moves extremely fast. While Apple excels at designing efficient mobile and laptop chips, scaling specialized AI accelerators for servers is a different challenge that hyperscalers like Google, Amazon, and Meta have been tackling for years.

Broader Context

This development comes just days after Apple announced a major multi-year expansion of its partnership with Broadcom, worth more than $30 billion. The deal includes custom silicon components and supports U.S. manufacturing expansion in Colorado. It underscores Apple’s broader push to strengthen its custom silicon capabilities while also highlighting how much it still relies on external partners for certain advanced technologies.

What It Means

If Apple follows through on acquisitions, it could help close the gap in its cloud AI infrastructure faster than organic development alone would allow. Success here would support more ambitious on-device and private-cloud AI features without heavy dependence on external clouds and GPUs.

It would also represent a meaningful evolution in Apple’s strategy: from a company that largely designs its own chips from scratch to one willing to acquire specialized expertise to stay competitive in the AI era.

The coming months will reveal whether these discussions lead to actual deals — and whether they can meaningfully accelerate Apple’s ability to run sophisticated AI models on its own terms.

MacDailyNews Take: The mad scramble to catch up continues. Hopefully, new Apple CEO John Ternus can quickly kick things back into high gear after far too many years of coasting along in neutral.

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