Apple Posts Quarterly Revenue of $114.5 Billion as iPhone Duo Supply Constraints Persist
Key Facts
Apple CEO John Ternus said the foldable iPhone Duo was "supply constrained through today" and that the company could not currently predict when supply and demand would balance. The comment puts supply constraints at the forefront of attention on the phone after sales began, while delivery estimates had extended into late January on October 23. Those dates appeared in earlier estimates, not in an official Apple announcement on November 2 that delivery had been postponed to that point. Ternus also did not give a timeline for improved supply or describe the issue as a severe shortage. The comments came as the company reported record quarterly revenue.
Apple reported revenue of $114.5 billion for the fiscal fourth quarter ended September 26, 2026, up 12% from the same period a year earlier. The company said quarterly revenue reached a record and that iPhone also posted a September-quarter record. Net income was $30.71 billion, or $2.10 per share, topping the average analyst estimate of $1.99 per share. Revenue was forecast at $113.4 billion, according to the Associated Press. iPhone revenue was $57.583 billion, compared with $49.025 billion in the year-earlier quarter.
The supply constraints coincide with preorders exceeding available supply, as delivery estimates had shifted to late January by October 23, according to a report published by Reuters via Investing.com. Before launch, Apple said quantities available to walk-in buyers at stores would be limited and that in-store availability would vary by country. In some markets, availability was limited to customers who bought online. These details provide context for Ternus's comment on the difficulty of saying when supply and demand would balance. They do not, however, turn earlier delivery estimates into confirmation that the company officially announced a new postponement on November 2.
On the display, Ternus said a very small percentage of iPhone Duo units had been returned because of problems with the screen, and that Apple was replacing the affected devices. The comment did not specify a numerical rate of returns or the number of units affected. The company is handling these cases while the phone's supply remains constrained, according to the CEO. This puts two separate issues in focus for the device: limited supply and the handling of units returned by some customers. Ternus did not link the screen problems to the supply constraints in the comments cited.
Apple forecast a gross margin of between 45% and 46% for the December quarter, after it was 47.9% in the fiscal fourth quarter. The company attributed the expected decline mainly to higher memory costs and expenses for its Siri artificial intelligence, according to the Associated Press. This guidance puts the profit margin among the key financial indicators to watch after the record quarter, alongside supply. In the foldable phone market, IDC forecast that Apple would capture 44% of market value and 31% of units in 2026. The firm expects the company to lead the market in value and units shipped in 2027.
In trading, Apple shares closed down 1.8% at $338.32 in regular trading on November 2. During the earnings call, the stock fell 2.6% to $329.60, according to the Associated Press. Its decline during the call coincided with the company presenting a lower margin forecast for the December quarter, while Ternus's comment on supply gave no timeline for improvement. The margin guidance points to a range of between 45% and 46%, compared with 47.9% in the previous quarter. The CEO could not say when supply and demand would balance.