Source : TechCrunch
CUPERTINO, California, November 2, 2026 – Apple has reported record revenue for its September quarter, driven by strong iPhone sales, but warned that rising memory chip costs would continue to put pressure on its margins during the crucial holiday period.
In its fiscal 2026 fourth-quarter results for the period ended September 26, the company posted revenue of US$114.5 billion, up 12 per cent from a year earlier. Diluted earnings per share rose 14 per cent to US$2.10, including a favourable impact of US$0.05 from tariff refunds, while gross margin was 47.9 per cent.
iPhone revenue reached US$57.58 billion, according to Reuters, above analyst estimates of US$56.54 billion. The quarter included the iPhone 18 Pro models but not the iPhone Duo, Apple’s first foldable phone. Apple said iPhone set a September-quarter record and Services revenue reached an all-time high.
“Today, Apple is proud to report a September quarter revenue record of US$114.5 billion, up 12 per cent from a year ago, with iPhone reaching a September quarter record and Services reaching an all-time high, capping off our best fiscal year ever,” said Chief Executive Officer John Ternus, who took over in September.
However, the outlook was clouded by the cost of memory. Ternus said Apple was seeing “unprecedented” memory pricing, The Verge reported, while TechCrunch said the company warned that memory chip costs would continue to rise, raising questions about future device prices as its inventory climbed to US$14.5 billion.
Apple said it expects gross margin of 45 to 46 per cent in the quarter ending in December, down from 47.9 per cent in the fourth quarter, Reuters reported. It also forecast services revenue growth of 8 to 9 per cent, below analysts’ expectations of 10.7 per cent. Shares fell 4 per cent during the conference call before paring losses to a 2 per cent decline.
“We did see higher memory costs as compared to the June quarter, which was partially offset by the benefit of carrying inventory and lower costs on certain non-memory components,” Ternus said, adding that price increases “provided some offset”. Apple raised iPhone 17 prices by US$100 when it launched the iPhone 18 Pro and also increased some MacBook prices.
Chief Financial Officer Kevan Parekh said Apple expects memory costs to keep rising into next year. Chief Operating Officer Sabih Khan did not directly confirm a long-term supply deal but said Apple was working closely with memory suppliers and that its purchasing commitments had increased by US$33 billion during the quarter.
On the iPhone Duo, Ternus told Reuters that “a very small percentage” of units had been returned for display issues and were being replaced, and that demand still outstripped supply. “Duo is constrained as of today,” he said. “The ramp is going well… but at this point, we’re not able to predict when supply and demand will be in balance.”
Mac sales came in at US$10.79 billion and Services revenue at US$31.57 billion, while iPad and wearables sales of US$6.23 billion and US$8.30 billion were both below estimates, Reuters said. Sales in China were US$17.54 billion. Apple said fiscal 2026 revenue reached a record US$479 billion, and its board declared a cash dividend of US$0.27 per share, payable on November 16, 2026.
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