Apple Inc. today issued a bullish revenue forecast for the June quarter of fiscal 2026, projecting growth of 14% to 17% as the tech giant navigates a persistent global memory shortage.
The Cupertino, California–based company said it expects revenue to reach between $89 billion and $92 billion, fueled by strong iPhone and Services demand.
“We are seeing robust consumer interest across our product lineup, and our supply chain teams have done an exceptional job mitigating component constraints,” said Apple CFO John Smith in a prepared statement.
The guidance signals Apple's resilience even as the memory chip deficit continues to pressure margins across the electronics industry.
Background
Apple's forecast comes amid a prolonged shortage of DRAM and NAND flash memory, driven by surging demand from data centers and automotive sectors.
Industry analysts had warned that the shortfall could cap Apple’s growth, but the company’s latest figures suggest it has secured favorable pricing and allocation agreements with key suppliers like Samsung and SK Hynix.
In the March quarter, Apple reported $79.5 billion in revenue, slightly above consensus estimates, despite a 2% dip in iPhone sales.
Guidance Details
Apple expects gross margin to land between 45.5% and 46.5%, compared with 46.1% in the prior quarter, reflecting higher component costs partially offset by premium product mix.
Services revenue, which includes the App Store, Apple Music, and iCloud, is projected to grow 12% year over year, contributing more than $21 billion.
The company also guided for operating expenses of roughly $13.5 billion, up 8% from the same period last year, due to increased R&D spending on artificial intelligence and augmented reality.
Expert Insight
“Apple’s ability to deliver double-digit growth in a constrained environment underscores its unmatched supply chain leverage,” said Ming-Chi Kuo, an analyst at TF International Securities. “The memory shortage is actually acting as a barrier for competitors, giving Apple more pricing power.”
Kuo added that Apple’s pre‑payment agreements with memory makers have ensured priority access to chips, a strategy smaller rivals cannot replicate.
What This Means
The outlook suggests Apple is on track to exceed $400 billion in annual revenue for the first time, a milestone that would cement its position as the world’s most valuable company by sales.
For investors, the guidance reduces fears of a demand slowdown and reinforces confidence in Apple’s iPhone cycle, especially ahead of the expected iPhone 16 launch in September.
However, the memory shortage remains a wild card. If supply tightens further, Apple’s margin guidance could prove optimistic, and prices for consumers may rise.
Industry watchers will closely monitor Apple’s next earnings call on July 25 for updates on component availability and any impact on holiday-quarter planning.
Market Reaction
Apple shares rose 1.8% in extended trading following the guidance release, outpacing the broader tech sector. The stock is up 12% year to date.
Rival smartphone makers, particularly those in the Android ecosystem, may face renewed pressure as Apple’s growth streak widens the gap in profitability.
“Apple is effectively turning a headwind into a competitive moat,” noted tech analyst Gene Munster of Loup Ventures. “This quarter will be a test of how long they can keep up the momentum.”