Breaking Down Apple's Q3 Results and Outlook

Summary

Apple's fiscal Q3 results beat on iPhone and Mac but missed on services and China revenue. Mark Gurman breaks down the numbers, highlighting the Mac's outperformance and its emerging role as an AI machine, and he previews a strong upcoming product cycle that could boost sales and margins.

• Apple Q3 revenue of $109.42B and EPS of $2.22 beat Wall Street estimates.
• iPhone revenue beat at $54.25B, while services revenue missed at $30.7B.
• Mac revenue destroyed estimates, coming in north of $10B, driven by in-house silicon.
• Greater China revenue of $18.8B missed the $19.5B estimate amid rising competition.
• Mark Gurman points to Mac's momentum and its positioning as the AI machine of choice.
• Upcoming launches of iPhone 18 Pro/Pro Max, a foldable iPhone, and new Watches are expected to drive strong demand.
• Price increases are seen as margin-supportive without hurting sales, a positive for the next quarter.