iPhone revenue grew 21.6 per cent on-year basis to $54 billion, with growth in every geographic segment
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Apple Inc announced record June quarter in India and other emerging markets in the third quarter of FY26, despite “very significant headwinds” in the supply chain and foreign exchange.“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 affect iPhone, Mac, and iPad. We’re seeing some very significant constraints currently,” said Tim Cook, CEO of Apple during the earnings call depsite flagging quarter records in the US, Latin America, Western Europe, India, China Mainland, Japan, and Southeast Asia.The company posted quarterly revenue of $10.94 billion, up 16 per cent year-on-year, led by products and services revenue. However, overall revenue was down 1.6 per cent sequentially.iPhone GrowthiPhone revenue grew 21.6 per cent on-year basis to $54 billion, with growth in every geographic segment and a June quarter record for upgraders. The company gained share globally during the quarter, as per Cook citing IDC data.“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,” said Cook.Meanwhile, India is feeling the effect of rising average selling prices across the board, as per IDC data. the possibility of costlier older-generation iPhones is “close to a certainty in coming weeks.”“iPhone shipments held roughly flat to just 1 per cent YoY degrowth — an improvement from the 5 per cent decline seen in Q1 2026. These softer numbers are being driven by supply constraints, not a drop in consumer interest. iPhones are still moving at full price (MRP), and demand remains healthy,” said Upasana Joshi, IDC India and SEA.Rising CostsDespite this, the brand still holds strong appeal in India, leading confidence that the slowdown will be temporary. Over the next two quarters, IDC does not expect Apple offering festive discounts on older iPhones. with the new series being even higher.When asked about memory costs, the company expects prices to continue rising higher even beyond the September-quarter, which could drive an increasing impact on business.“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,” said Cook although he expects the costs to be offset by a decreasing carry-in inventory benefit, lower costs on certain non-memory components.Mac delivered its best June quarter with a revenue of $ 10.4 billion, up 28.6 per cent from a year-ago, despite supply constraints driven by demand for MacBook Pro and MacBook Neo. These are among the Apple products that reported a 15-20 per cent price hike in India in June.Financing Initiatives“While temporary supply constraints and channel inventory adjustments weighed on June quarter iPhone sell-in, underlying consumer demand remained resilient. Apple also delivered another record revenue quarter in India, with Mac leading growth, driven by strong MacBook Neo adoption. Apple’s aspirational brand positioning continues to attract new consumers and strengthen its ecosystem,” said Shubham Singh, Research Analyst at Counterpoint Research. The research firm expects single-digit shipment growth and double-digit revenue growth in India this year, supported by premiumisation, financing initiatives, and a richer product mix.In the Asia Pacific region, excluding Greater China and Japan, revenue grew by 12.6 per cent annually to $8.8 billion. Regionally, China, Europe and emerging markets were the standout performers, as stable pricing improved Apple’s relative value proposition amid widespread Android price increases. Overall, Apple hit its highest-ever second-quarter revenue share of 49 per cent in Q2 2026, as per Counterpoint Research. The brand’s revenue rose 22 per cent YoY during the quarter, supported by a 13 per cent increase in shipments and 8 per cent growth in ASP.“Unlike peers that pushed through steep price increases, Apple kept pricing largely stable, reflecting its ability to absorb rising BOM costs and remain insulated from the memory crisis. However, Apple will likely increase prices in the coming quarters. This discipline strengthened Apple’s competitive position, enabling growth in both value and volume even as much of the market contracted,” said Tarun Pathak, Research Director, Counterpoint Research.Published on July 31, 2026
