Apple is in a transitional period: Tim Cook’s final earnings as CEO showed strong iPhone and Mac growth despite memory shortages and rising costs, while John Ternus prepares to take over as CEO on September 1. The company is gearing up for a major September hardware event expected to feature the iPhone 18 Pro models and its first foldable iPhone. Ongoing issues include supply constraints, price pressures, a high-profile lawsuit with OpenAI, and software betas (iOS 27 and related updates) rolling out ahead of the fall launches.
- Q3 2026 Earnings & Leadership Transition: Apple reported $109.4 billion in revenue (up 16% year-over-year) and $29.8 billion in profit. iPhone sales rose 22% to $54.25 billion; Mac sales jumped 29% to $10.35 billion. Services hit $30.74 billion with over 1.5 billion paid subscriptions. Tim Cook’s last earnings call as CEO confirmed his move to executive chairman on September 1, with John Ternus (hardware engineering SVP) becoming CEO. Memory shortages are expected to worsen and raise costs further.
- iPhone 18 Pro / Pro Max & Foldable iPhone (Expected September Launch): Apple is preparing to unveil the iPhone 18 Pro and Pro Max (with A20 Pro 2nm chip, smaller Dynamic Island, improved batteries, and possible camera upgrades) alongside its first foldable iPhone (often called iPhone Ultra or iPhone Fold). The foldable is a book-style device with ~7.8-inch inner display and ~5.5-inch cover screen; production targets ~10 million units. Standard iPhone 18 and related models are expected in spring 2027. Price increases are widely anticipated due to component costs.
- Memory Shortages & Price Increases: Global RAM/storage shortages (driven by AI demand) have already forced price hikes on Macs, iPads, and other products. Further constraints are expected to hit iPhone, Mac, and iPad supply; higher memory costs are projected to continue into 2027. Additional price rises for new iPhones are considered likely.
- Apple vs. OpenAI Trade Secrets Lawsuit: Apple sued OpenAI and two former employees (including OpenAI’s hardware chief) in July alleging theft of trade secrets related to unreleased hardware. On August 4, Apple sought a preliminary injunction and expanded claims involving additional former staff; OpenAI publicly rejected the allegations as “aggressive and oddly personal.” Hearing set for October.
- Software & Accessories Updates: Apple released new beta firmware for AirPods Pro 2/3, AirPods 4, and AirPods Max 2 with iOS 27 features. iOS 27 / related OS betas (including smarter Siri/Apple Intelligence) continue testing ahead of fall releases. watchOS 27 will drop support for older Apple Watch models.
- Other Notable Items:
- Apple’s annual India sales surpassed $10 billion for the first time.
- New AirPods beta firmware and ongoing App Store / services activity.
- Apple TV: Season 4 premiere of Ted Lasso now streaming.
- Limited mentions of Vision Pro (ongoing software updates), iPad, MacBook, Handoff, AirDrop, and iCloud in current headlines, mostly tied to broader OS updates or supply issues rather than major standalone news.
- Class-action lawsuit over Photos app face-scanning technology (alleged $32.5 billion claim).
- Potential for more advanced Siri AI features to require iCloud+ in some cases (rumored).
These stories center on Apple’s strong hardware momentum heading into the September event, cost and supply pressures, the CEO handoff, and legal/AI-related tensions.
