iPhone 17 – Misryoum rounds up Apple’s latest Q2 2026 call, highlighting iPhone supply limits, rising memory costs, Mac AI demand, and services strength.
Apple’s latest earnings call delivered a familiar theme: strong demand paired with supply realities that shaped what could be sold.
During the second fiscal quarter of 2026. Apple reported $111.2 billion in revenue and pointed to double-digit growth across regions and product categories.. In the first paragraph of Misryoum’s recap. the focus lands on iPhone 17 performance: iPhone revenue reached $57 billion. marking a 22% year-over-year gain and a record for the March quarter.
The iPhone story was both bullish and constrained.. Apple said demand for the iPhone 17 lineup was “off the charts,” yet supply limitations restricted revenue.. The company traced part of the bottleneck to chip production pressures tied to advanced manufacturing nodes. including where components are made for AI-focused workloads.. Still, Apple framed the iPhone 17 family as its best-selling lineup to date, saying it gained market share during the quarter.
Insight: When demand is loud but supply is tight, the market learns more about future production capacity and component availability than about consumer interest alone.
Apple’s memory situation also stood out.. Misryoum noted that management flagged higher memory costs during the March quarter. with expectations that the pressure will worsen into the June quarter and beyond.. That kind of cost shift can quietly affect margins even when top-line performance looks solid.
Meanwhile, Mac sales showed a smaller but positive result, with revenue up to $8.4 billion year-over-year.. Apple attributed impacts to supply constraints driven by demand that exceeded expectations.. Misryoum also reported that the MacBook Neo sold out. with shipping times stretching for weeks. while Mac mini and Mac Studio demand remained high. particularly from customers looking to run AI and agentic tools.
The supply squeeze appears to be a longer tail for Macs.. Apple suggested it may take months to return Mac Studio and Mac mini supply and demand to balance. implying these systems could be difficult to obtain for a while.. Management also indicated that the company underestimated demand, especially for platforms positioned around AI workflows.
Insight: Product scarcity can boost perceived momentum, but prolonged imbalance often becomes a planning problem for buyers and a revenue limiter for the company.
On the leadership front, Tim Cook used the call to look ahead to John Ternus, who is set to take over as CEO on September 1, 2026. Cook described Ternus as an engineering-focused leader, and Ternus echoed confidence about Apple’s roadmap without giving additional specifics.
Apple also leaned into its broader ecosystem.. Services revenue hit a new all-time high at $31 billion. while wearables revenue rose to $7.9 billion and the Apple Watch install base reached a new record.. Retail performance was also described as strong, supported by very high store traffic during the quarter.
At the same time. Apple reaffirmed that AI remains a key investment area. with continued work framed as incremental alongside the usual product roadmap.. Misryoum’s final takeaway is that the company appears to be balancing near-term constraints (chips. memory costs. and availability) with longer-term bets on services and AI capabilities.