Apple closed Tim Cook’s final earnings call with a record June quarter: fiscal Q3 revenue reached $109.42 billion, up 16.4% year over year, while net profit rose to $29.8 billion. The result gives Cook a strong financial handoff as Apple’s next leadership era begins, but it also leaves the company’s biggest software question—Siri AI’s European rollout—unresolved.
As reported by Electronics Weekly and corroborated by Apple’s investor-relations schedule and Associated Press coverage, iPhone and Mac demand powered the quarter despite a difficult consumer-electronics market. iPhone revenue climbed 21.7% to $54.25 billion, while Mac revenue jumped 28.7% to $10.35 billion.
Apple’s iPad business was the exception, declining 5.9% year over year to $6.19 billion. Wearables, Home and Accessories increased 6.5% to $7.88 billion, a more modest gain but still a positive result for a category that includes Apple Watch and AirPods.
The 50.1% gross margin is notable because it suggests Apple maintained pricing and product-mix discipline while expanding higher-margin services. Services revenue rose 12.1% to $30.74 billion, covering the App Store, iCloud, subscriptions and content businesses that are increasingly central to Apple’s recurring-revenue model.
For Windows PC makers and enterprise IT buyers, the Mac result is an important competitive datapoint. Apple’s growth comes as the wider PC industry attempts to turn AI-capable hardware and operating-system refreshes into a replacement cycle; a nearly 29% Mac increase shows Apple is capturing meaningful demand at the premium end.
That is more than a regional footnote. Apple said in June that Siri AI would not arrive on iPhone and iPad in the European Union with the new software releases, blaming Digital Markets Act interoperability requirements. The European Commission disputed Apple’s framing, saying the company had sought an exemption rather than delivering a compliant implementation.
Apple has nevertheless begun positioning Siri AI as a substantially more personal assistant, with broader app and device context than the legacy Siri experience. Its availability on Macs and Apple Vision Pro in the EU, when configured for supported languages, underlines the complication: the company’s obstacle is specifically the iPhone and iPad platform relationship with the DMA, not a blanket inability to offer AI services in Europe.
But the more consequential test is whether Apple can make Siri AI available on EU iPhones and iPads without retreating from the tightly controlled integration model that has long defined iOS. The next Apple earnings call will show whether the company’s financial momentum outlasts Cook; the next EU decision may show how much of Apple’s AI strategy can survive unchanged.
Hardware Sales Did the Heavy Lifting
Apple’s iPad business was the exception, declining 5.9% year over year to $6.19 billion. Wearables, Home and Accessories increased 6.5% to $7.88 billion, a more modest gain but still a positive result for a category that includes Apple Watch and AirPods.The 50.1% gross margin is notable because it suggests Apple maintained pricing and product-mix discipline while expanding higher-margin services. Services revenue rose 12.1% to $30.74 billion, covering the App Store, iCloud, subscriptions and content businesses that are increasingly central to Apple’s recurring-revenue model.
For Windows PC makers and enterprise IT buyers, the Mac result is an important competitive datapoint. Apple’s growth comes as the wider PC industry attempts to turn AI-capable hardware and operating-system refreshes into a replacement cycle; a nearly 29% Mac increase shows Apple is capturing meaningful demand at the premium end.
Siri AI Remains an EU Problem
Cook’s final question on the call concerned European regulation and the status of Siri AI. He said Apple is working toward getting the technology approved for use in Europe.That is more than a regional footnote. Apple said in June that Siri AI would not arrive on iPhone and iPad in the European Union with the new software releases, blaming Digital Markets Act interoperability requirements. The European Commission disputed Apple’s framing, saying the company had sought an exemption rather than delivering a compliant implementation.
Apple has nevertheless begun positioning Siri AI as a substantially more personal assistant, with broader app and device context than the legacy Siri experience. Its availability on Macs and Apple Vision Pro in the EU, when configured for supported languages, underlines the complication: the company’s obstacle is specifically the iPhone and iPad platform relationship with the DMA, not a blanket inability to offer AI services in Europe.
A Strong Exit, With a Software Deadline Attached
Cook leaves the earnings-call stage with iPhone, Mac and Services all delivering double-digit growth, and with Apple’s margins holding above 50%. Those numbers provide a favorable backdrop for his successor.But the more consequential test is whether Apple can make Siri AI available on EU iPhones and iPads without retreating from the tightly controlled integration model that has long defined iOS. The next Apple earnings call will show whether the company’s financial momentum outlasts Cook; the next EU decision may show how much of Apple’s AI strategy can survive unchanged.
References
- Primary source: Electronics Weekly
Published: 2026-07-31T05:09:06+00:00
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