Apple posts record Q3 revenue but flags memory chip cost pressures

Apple Inc. reported third‑quarter revenue of $109.4 billion, up 16% year over year, beating estimates by about $500 million. iPhone sales rose 22% to $54.3 billion, Mac revenue jumped 29% to $10.4 billion, and services grew 12% to $30.7 billion. Earnings per share were $2.02, topping forecasts by $0.13, helped by a $0.11 tariff‑refund benefit.

Despite the strong results, the stock fell roughly 7% after the company issued guidance for the next quarter of 9%‑11% revenue growth, below Wall Street expectations. Apple cited foreign‑exchange headwinds and a shortage of memory chips as major constraints, warning that rising memory costs could further pressure margins. CEO Tim Cook described the situation as a “hundred‑year flood” and noted that memory price increases have already led to price hikes on some Mac and iPad models.

Cook also highlighted a 32% increase in R&D spending to $11.7 billion as Apple ramps up its artificial‑intelligence efforts. The earnings call marked Cook’s final appearance before John Ternus assumes the role of chief executive officer in September, inheriting a business with strong demand but tighter chip supplies and higher component costs.