Tim Cook hosted his final earnings call as CEO, Apple posted a record June quarter, and a new leasing program started in the United States — but not here.
A record June quarter, with supply already tight
Apple reported revenue of US$109.4 billion for the quarter ended 27 June, up 16 per cent, and earnings per share of US$2.02, up 29 per cent. It set June-quarter records for total revenue, iPhone, Mac and Services. iPhone revenue was US$54.3 billion, up 22 per cent, and Cook said it was the top-selling model in Australia, as well as in the US, the UK, France, Japan and urban China. Mac revenue was US$10.4 billion, up 29 per cent, led by MacBook Pro and MacBook Neo, despite what the company called significant supply constraints. Services reached US$30.7 billion, up 12 per cent. Wearables, Home and Accessories made US$7.9 billion, up 6 per cent. iPad was the weak spot, down 6 per cent to US$6.2 billion. Apple said its installed base of active devices reached an all-time high of more than 2.5 billion, and that paid subscriptions have passed 1.5 billion.
Gross margin was 50.1 per cent, including about two percentage points from tariff refunds. Cook also warned that memory costs rose again this quarter and will get worse in September, and that supply constraints on advanced chips — driven by stronger-than-expected iPhone and Mac demand — will weigh on the next quarter. Apple guided to 9 to 11 per cent revenue growth, with foreign exchange a further headwind.
It was Cook’s last quarterly call as CEO. Incoming chief John Ternus joined him on the call for the first time, and takes over on 1 September. Cook used the end of the call to thank shareholders and analysts, and said he could not be more confident in Ternus and the rest of the team.
Apple Upgrade launches in the US, not here
As expected, Apple launched Apple Upgrade in the United States on Tuesday, a leasing program run with Klarna that replaces the iPhone Upgrade Program. iPhone and Apple Watch can be leased over 12 or 24 months, and Mac and iPad over 24 or 36 months. Cook said it is US-only for now. There is no Australian launch date. Here, Apple already offers Afterpay and other financing at checkout, but not this leasing scheme. Cook said residual values on Apple products tend to be higher than the competition, and that early feedback in the US had been positive, but he also noted it is only in Apple’s own stores, not every retail channel.
iOS 26.6 is worth installing
Apple also released iOS 26.6 and iPadOS 26.6 on Monday, with matching updates across the rest of the 26.6 family. The public notes highlight security fixes and work to prepare the Spotlight search index for iOS 27 in September. It is likely one of the last 26-series updates before the new software arrives. You can install it in Settings, then General, then Software Update.
What to watch next week
Supply and memory costs will keep hanging over pricing and availability, including for the next iPhones. The September event is a little over a month away, and iOS 27 remains in public beta until then.
