Apple Warns of Growing Supply Constraints Ahead
Apple reported strong Q3 2026 results, but warned of significantly greater supply constraints and foreign exchange headwinds in the September quarter, impacting iPhone, iPad, and Mac sales. The company's stock fell 6.5% after the earnings call.
Key points
- Apple's Q3 2026 revenue grew 27% year over year, driven by double-digit growth in iPhone and Mac sales.
- However, iPad revenue fell 5% year over year, and Services revenue recorded its first sequential decline since 2022.
- Apple CFO Kevan Parekh expects supply constraints to increase significantly sequentially, shaving 2.5 percentage points off revenue growth.
- The company's stock is trading 6.5% below its closing price after the earnings call.
- Apple CEO Tim Cook attributed the supply constraints to a demand forecast issue, not a partner or supplier issue.
Apple's Q3 2026 results were driven by strong sales of its iPhone and Mac products, but the company warned of growing supply constraints and foreign exchange headwinds in the September quarter. The company's stock fell 6.5% after the earnings call.
The supply constraints are expected to impact iPhone, iPad, and Mac sales, with Apple CFO Kevan Parekh warning that the impact will be significant. The company's revenue growth is expected to be shaved by 2.5 percentage points due to currency fluctuations.
Apple CEO Tim Cook attributed the supply constraints to a demand forecast issue, not a partner or supplier issue. The company's strong product cycle has led to demand beyond expectations, but the supply chain is less flexible than normal.
The company expects to pay higher memory costs in the September quarter, but will partially offset the increased costs through carry-in inventory. However, memory will continue to be problematic for the company.
Sources
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