Apple (NASDAQ: AAPL) generated $109 billion in revenue for the second quarter of fiscal 2026 (ending June 2026), marking a 16% year-over-year increase and setting a new June-quarter record. This milestone makes it the fourth consecutive quarter where revenue has exceeded the $100 billion mark.
Both hardware and services segments posted double-digit growth, with hardware rising 17% and services up 16%. Revenue growth was also double-digit across all geographic regions, each reaching new highs for the June period.
iPhone revenue climbed 22% year-over-year, surpassing $50 billion for the first time in a June-ending quarter. Counterpoint Research Chief Analyst Varun Mishra attributed the strong iPhone performance to the robust demand for the iPhone 17 series. He noted that Apple kept pricing stable throughout the quarter while competitors raised prices by 15-20%, strengthening its competitive position. The company also increased shipments, particularly in China, to capture market share as rivals hiked prices. Additionally, anticipation of future iPhone price increases spurred some consumers to purchase earlier.
Mac revenue grew 29% year-over-year, also setting a June-quarter record. Counterpoint Research Deputy Director David Naranjo highlighted that Macs significantly outperformed the broader PC market, which is grappling with rising storage costs and weak consumer demand. The MacBook Neo, with its more accessible price point designed to attract students, first-time Mac buyers, and potential Windows PC switchers, expanded Apple's user base. Although the Neo's lower price reduced the overall average selling price (ASP), the resulting volume growth, combined with sustained demand for MacBook Air and MacBook Pro, drove strong revenue gains and expanded the active installed base.
iPad was the only product segment to see a year-over-year revenue decline, largely due to a tough comparison with last year's higher base. The wearables, home, and accessories segment grew 6% year-over-year, driven by growth in Apple Watch, AirPods, and accessories. Apple Watch revenue increased, supported by higher shipments and record upgrade rates, though the ASP fell as the lower-priced SE models made up a larger share of sales.
Looking ahead, Counterpoint Research Research Director Tarun Pathak warned that the smartphone industry will face a more difficult environment in the second half of the year, as storage prices are expected to keep rising. Increasing component costs are driving broad price hikes across the Android ecosystem. However, Pathak noted that Apple, benefiting from its massive active installed base and early positive feedback on Siri AI, is expected to continue outperforming the broader industry in its core hardware categories. The June-quarter results support this view. While most OEMs are struggling to balance maintaining margins with protecting shipment volumes, Apple has so far managed to avoid this dilemma.
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