Apple executives indicated that rising memory costs will increasingly impact the company's operations.
On April 30, Apple (AAPL.O) released its financial results for the second quarter of fiscal year 2026, ended March 28, 2026. The company reported revenue of $111.2 billion, a 17% increase compared to the same period last year. Net profit reached $29.6 billion, up 19% year-over-year.
Apple CEO Tim Cook stated that the quarter represented the company's best quarterly performance ever, with revenue growth reaching double-digit percentages across all geographic regions. Driven by strong market demand for the iPhone 17 series, iPhone business achieved a new quarterly revenue record, and services revenue also hit an all-time high.
Breaking down the results by product category, iPhone sales increased to $56.994 billion for the quarter, up 21.68% from $46.841 billion in the prior-year period. Sales of Mac and iPad grew to $8.399 billion and $6.914 billion, respectively, compared to $7.949 billion and $6.402 billion a year ago. Revenue from Wearables, Home, and Accessories rose to $7.901 billion from $7.522 billion. Services revenue climbed to $30.976 billion from $26.645 billion in the year-ago quarter.
Across different regional markets, Apple saw revenue growth in the Americas, Europe, Greater China, Japan, and the rest of Asia Pacific. Specifically, revenue in Greater China for the second quarter was $20.497 billion, an increase of 28%.
During the earnings call, Apple executives projected revenue growth for the third fiscal quarter to be between 14% and 17% compared to the same quarter last year.
Furthermore, Apple management acknowledged that the company is contending with shortages of memory chips and other components, which are constraining supply for both iPhones and Macs. However, despite some supply limitations affecting revenue, the iPhone 17, as Apple's most popular product line in history, still outperformed previous expectations for the quarter.
Tim Cook noted on the call that the impact of memory price increases and shortages was somewhat greater this quarter than in the previous quarter. He anticipates a significant rise in memory costs during the third fiscal quarter. Cook stated that increasing memory costs will have a growing effect on the company's business and that Apple is considering various strategies to address the situation.
Cook also commented on the upcoming CEO transition at Apple. On April 20, Apple announced that Tim Cook will step down as CEO on September 1 of this year and transition to the role of Executive Chairman of the Board. John Ternus, formerly Senior Vice President of Hardware Engineering, will succeed him as CEO.
Cook expressed confidence that Apple is prepared for a smooth leadership transition, stating that the company has the right team in place to achieve its vision.
John Ternus remarked that the company has an "incredible roadmap" and that, in his 25 years at Apple, the current period is the most exciting time for building products and services.
Apple executives also discussed the company's partnership with Google. In January, Apple and Google announced a multi-year strategic cooperation agreement, under which Google's core Gemini model architecture will be used to support the next generation of Apple Foundation Models. Apple management reported on the call that the collaboration with Google is progressing well.
Additionally, Apple executives disclosed that the company's Board of Directors has approved a new share repurchase program of up to $100 billion.
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