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Record iPhone and service sales, a 24 percent increase in Mac sales, and storage prices that Apple itself calls unprecedented: The quarterly conference delivered significantly more than the press release. John Ternus, Kevan Parekh, and, for the first time, Sabih Khan answered questions from ten analysts. All the important information is summarized here.
Apple closed fiscal year 2026 with the best September quarter in its history. The key figures for the fourth quarter are in Apple's announcement, and the statements from the conference call are in the transcript.
The focus was on the outlook for the December quarter, Ternus' first conference call as CEO, the supply shortage of the iPhone Duo, the slower growth in services, and the increased research budget.
Key Facts at a Glance
- Revenue $114.48 billion, earnings per share $2.10, fiscal year with a record $478.83 billion.
- Mac sales grew by 24 percent, driven by the MacBook Neo and MacBook Pro. iPad and wearables declined.
- Excluding customs refunds, the margin fell by about one point compared to the previous quarter, entirely due to storage.
- Apple expects shortages of Mac and iPad for the December quarter, again primarily due to storage.
- Purchase commitments increased by $33 billion in one quarter.
Key figures at a glance
| Key figure | Q4 2026 | Q4 2025 | Change |
|---|---|---|---|
| Sales volume | 114.48 billion $ | 102.47 billion $ | +11,7 % |
| Products | 82.90 billion $ | 73.72 billion $ | +12,5 % |
| Services | 31.57 billion $ | 28.75 billion $ | +9,8 % |
| Net profit | 30.71 billion $ | 27.47 billion $ | +11,8 % |
| Earnings per share | 2,10 $ | 1,85 $ | +13,5 % |
| Total gross margin | 47,9 % | 47,2 % | +0.7 points |
| Gross margin products | 37,2 % | 36,2 % | +1.0 points |
| Gross Margin Services | 76,0 % | 75,3 % | +0.7 points |
| Operating expenses | 19.19 billion $ | 15.91 billion $ | +20,6 % |
Operating capital generation was $28.1 billion. Total and product margins include approximately one percentage point from customs refunds, and earnings per share include 5 cents. According to Parekh, net income and earnings per share would have been record highs for a September quarter even without the refunds.
iPhone: Record for a September quarter
iPhone sales reached $57.6 billion, a 17 percent increase despite supply shortages and currency fluctuations. Growth was strong, with double-digit increases in the US and mainland China. Apple reported a record number of iPhone upgrades for the September quarter, both globally and in the US, mainland China, and India.
Overall, it was the best year ever for the iPhone, worldwide and in every region. According to a Worldpanel survey, the iPhone was among the best-selling models in the US, in cities across China, in India, the UK, Germany, Australia, and Japan.
Mac: Never before so many devices in a single fiscal year
Mac sales rose 24 percent to $10.8 billion, despite supply chain issues. Parekh cites the MacBook Neo and MacBook Pro as key drivers, noting record numbers of Mac upgrades and new purchases in emerging markets. A record was also set for the September quarter in first-time Mac buyers.
Ternus said Apple had never sold so many Macs in a single fiscal year. According to IDC, Apple gained market share worldwide both in the quarter and in the fiscal year.
iPad and wearables: Difficult comparison with the previous year
iPad sales fell 10 percent to $6.2 billion. Parekh cites supply bottlenecks and the comparison to the previous year's launch of the iPad with the A16 chip as reasons for the decline. More than half of the buyers were new iPad users.
Wearables, home, and accessories declined 8 percent to $8.3 billion; Parekh cites the comparison with the launch of the Apple Watch SE 3 and AirPods Pro 3 last year. In that case, too, more than half of the Apple Watch buyers were new.
Regions: China is catching up
Record figures for a September quarter were set in the Americas, Europe, Greater China, and the rest of the Asia-Pacific region, along with an all-time record in India. Greater China grew by 21 percent, and by 28 percent for the entire fiscal year.
According to a Worldpanel survey cited by Ternus, the three best-selling smartphones in Chinese cities were iPhone models. Counterpoint reported that the MacBook Air and MacBook Neo were the two best-selling laptops in China during the September quarter, while the Mac mini was the best-selling desktop computer.
The Europe segment generated $32.01 billion, an increase of 11.5 percent. Apple does not report Germany separately.
Services: App Store at last year's level
According to Parekh, the exchange rate explains around four percentage points of the decline in growth between the March and September quarters, with another half point added in the December quarter.
The App Store performed at the same level as the previous year in the September quarter. The number of paid subscriptions for third-party apps reached a record high with double-digit growth, while mobile gaming continued to slow and is expected to do so in the December quarter as well. This is compounded by changes in business models in some countries and, in the US, court rulings regarding redirects from apps.
On average, nearly one billion people visited the App Store each week, a record. During the video, Ternus referenced the Emmys: "Widow's Bay" won 14 awards, and Apple TV productions have garnered more than 900 awards and over 3,800 nominations. Apple Pay is available in more than 90 markets and most recently launched in India.
Storage and margin: Unprecedented prices
Without the refunds, the margin fell by about one percentage point compared to the June quarter, entirely due to memory, according to Parekh. Three countermeasures were already in place: older inventory, cheaper components, and the price increases, which, in his words, Apple implemented only reluctantly.
Beyond the December quarter, Ternus expects storage prices to continue rising, and the benefit from existing inventory will diminish over time. According to Parekh, the refunds have now been largely received.
Regarding how buyers are reacting to the higher prices, Parekh said it was too early to say. iPads and Macs have been in short supply since the price change, and the iPhone price increase only took place in September.
Supply chain: Bottleneck shifts to storage
COO Sabih Khan described the bottlenecks in the September quarter as a result of high demand and reduced flexibility in the supply chain, especially at the most advanced manufacturing stages. This will ease with the switch to 2 nanometers.
He expects shortages of Macs and iPads in the December quarter, primarily due to storage. Apple is not providing any guidance for the period thereafter. According to Ternus, production commitments increased by $33 billion from June to September to improve supply. This figure is expected to be included in the annual report.
Siri AI: What the feature costs
According to Ternus, Siri answers more than 2.5 billion queries daily; Apple had already cited this figure in September. This includes classic Siri queries; Apple did not specify the percentage attributable to Siri AI.
Cloud costs are included in the service costs. As with Maps, Siri, and iCloud, Apple is also setting aside a portion of device revenue and spreading it over the device's lifespan; this will also apply to Siri AI starting in the December quarter. According to Parekh, both of these factors impact the profit margin. He added that the overall impact of device and cloud revenue cannot yet be accurately assessed.
According to Ternus, those who want more server-side access will be able to purchase expanded access in the future. Siri AI is currently not available in the EU for iOS, iPadOS, and watchOS; Switzerland is an exception. German is not yet among the supported languages.
Businesses and schools
Ternus cited as an example what he called the largest educational project for the Mac: 170,000 MacBook Neos being distributed by the Philippine Department of Education to teachers and staff.
Parekh cited American Airlines as an example of companies that have provided over 37,000 iPhone 17s to flight attendants and 25,000 iPads to pilots and mechanics. Gap uses the Mac mini for AI-powered anti-theft solutions in hundreds of stores, while Christie's runs local models on the Mac Studio. Duke Health hosted the first hip arthroscopy using Apple Vision Pro and an FDA-approved app from Stryker.
Capital and shareholders
Apple ended the quarter with $137 billion in cash and securities and $80 billion in debt. $28 billion was distributed to shareholders, including $24 billion through share buybacks and $3.9 billion in dividends. The dividend of $0.27 per share will be paid on November 16.
One question concerned the abandoned goal of reducing net liquidity to zero. Parekh said Apple now values cash and debt independently but remains committed to its basic principle: invest what is necessary and return the surplus to shareholders.
Manufactured in the USA
Ternus pointed to the program for manufacturing in the USA. Perryman supplies titanium for the iPhone Duo, and Qnity Electronics manufactures the technology for the variable aperture in the iPhone 18 Pro. Almost 100 components of the new iPhones come from US companies in more than a dozen states, and the commitment of $600 billion over four years still stands.
Outlook at a glance
| Key figure | December quarter |
|---|---|
| Sales volume | +7 to +10 %, best quarter in the company's history |
| Services | +8 to +9 % |
| Gross margin | 45–46 % |
| Operating expenses | 20.4–20.8 billion $ |
| Other income | approximately 300 million $ |
| Tax rate | approximately 17 % |
Parekh describes the 11 to 13 percent growth in operating expenses as being driven primarily by research and AI. According to Apple, the forecast reflects a limited supply.
Strong year, expensive winter
What I see at this conference is primarily a company that's doing a great job of selling while simultaneously openly admitting that storage prices are unprecedented and will continue to rise. For buyers in German-speaking countries, the most direct consequence is the shortage of Macs and iPads. New models will be available there starting November 6th, and anyone wanting a specific device shouldn't wait too long.
Which statement from the conference surprised you the most: the Mac record, the storage prices, or the slowing services growth? Tell us in the comments what interested you the most.
