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Apple services slowdown amid component shortages, gaming dip

Updated 2 times since CLSTR started tracking revisions of this situation.

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2026-07-31 16:16 UTC → 2026-07-31 16:42 UTC · added removed

Apple services slowdown amid component shortages shortages, gaming dip

Apple’s fiscal third‑quarter 2026 results continued the mixed picture of strong to show record hardware revenue—$109.4 billion overall, with iPhone sales of $54.2 billion and a lagging Mac sales of $10.3 billion—but the services segment. Revenue hit a record $109.42 segment again fell short of expectations. Services revenue remained at $30.74 billion, below the $31.22 billion analysts had forecast, driven primarily by iPhone a slowdown in mobile‑gaming earnings on the App Store. Global game downloads are declining, and Mac demand, while services generated $30.74 billion, missing analyst expectations. although average spend per download has risen, the overall growth rate has weakened. At the same time, a court‑ordered ruling forces Apple to permit developers to use their own payment systems, curbing the company’s standard commission model. Additional App Store policy changes have expanded support for streaming games and altered fee structures in several markets, including the United States. Despite these pressures, Apple still reports record revenues from Apple Ads, Apple Music and Apple TV, and it maintains a subscriber base exceeding five billion paid subscriptions across its services. The company reaffirmed also reiterated that advanced memory‑chip shortages and rising component costs are limiting production capacity, prompting a modest cautious revenue‑growth outlook of 9 %–11 % revenue growth outlook for the September quarter, below the roughly 12 % Wall Street forecast, citing escalating shortages of advanced memory chips intensified by AI‑driven data‑center demand. quarter. The shortage limits production guidance contributed to a post‑earnings share decline of iPhones, Macs and iPads. Following the guidance, Apple’s shares fell 4 roughly 5 %–10 % in after‑hours trading, %, erasing about $500 billion in market value. Tim Cook announced he will step Cook, in his final earnings call before stepping down as CEO on 1 September, with confirmed the transition to hardware chief John Ternus set to succeed him. Analysts adjusted price targets, ranging from $250 to $400, with an average 12‑month target near $330, reflecting caution over the services shortfall and supply‑chain constraints while noting the company’s robust hardware performance and upcoming AI‑related product launches. as his successor.

Versions

  1. 2026-07-31 16:42 UTC Apple services slowdown amid component shortages, gaming dip
  2. 2026-07-31 16:16 UTC Apple services slowdown amid component shortages
  3. 2026-07-31 14:23 UTC Apple services revenue slowdown

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