Apple CEO Tim Cook participated in his final Apple earnings call yesterday, with incoming CEO John Ternus set to take over on September 1. With Cook's tenure coming to an end, we thought we'd take a look at how Apple has changed over the last 15 years.


Cook took over as CEO on August 24, 2011, after Steve Jobs resigned.

Apple's Revenue

During yesterday's earnings call, Bank of America analyst Wamsi Mohan shared an interesting observation about Apple's quarterly earnings. When Cook took over as CEO, Apple's revenue for all of 2011 was $108 billion.

Apple reported $109.4 billion for Q3 2026, earning its 2011 revenue in a single quarter. We don't have the numbers for fiscal 2026 yet, but in fiscal 2025, revenue was $416 billion.

iPhone revenue in 2011 was $47 billion, and just this quarter, it was $54.3 billion.

Valuation

Apple stock is down today after Cook said he expects supply constraints and memory shortages to affect revenue in the current quarter, but last week, Apple briefly hit a market cap above $5 trillion. Apple's market cap is now around the $4.5 trillion mark, and it once again trails Nvidia for world's most valuable publicly traded company.

Apple was the first company to reach a $1 trillion valuation in August 2018, the first to reach $2 trillion in August 2020, and the first to reach $3 trillion in January 2022. It was the third company to hit a $4 trillion valuation in October 2025, and then the second to reach $5 trillion.

A day after Cook took over in August 2011, Apple's stock price was $13.35 (split-adjusted). Today, it opened at $304.81, a roughly 23x increase. There was a 7-for–1 split in 2014 and 4-for–1 split in 2020 during Cook's tenure.

Installed Base

Apple said it has over 2.5 billion active devices. Apple didn't share installed base numbers until 2016, when it hit a billion active devices.

Services

Apple's services category revenue has seen the most growth. It was $9.4 billion in all of 2011, but in Q3 2026, it was $30.7 billion. In fiscal 2025, services brought in $109 billion.

Apple said during the earnings call that it now has 1.5 billion subscriptions. A huge number of services launched under Cook, including:

• Apple Pay


• ‌Apple Pay‌ Cash


• Apple Card


• Apple Music


• Apple News


• Apple TV+


• Apple Arcade


• Apple Fitness+


• iCloud+


• App Store Search Ads


• Ads in Maps

Back in 2011, Apple's services were limited to AppleCare, iTunes, and the ‌App Store‌.

Product Launches

Under Cook, Apple launched everything from the AirPods to the Apple Watch.

• Apple Watch


• AirPods


• Apple silicon chips


• Vision Pro


• iPhone Air


• iPhone X


• HomePod and HomePod mini


• MacBook Neo

Capital Returns

Cook initiated quarterly dividends in 2012, and also executed an ongoing share repurchase program. Since then, Apple has returned more than $1 trillion to shareholders.

Transition to John Ternus

Cook said yesterday that the transition to Ternus is "going seamlessly." Ternus will become CEO on September 1, ahead of when Apple announces new iPhone models. Cook will remain at Apple as executive chairman, where he will engage with policymakers and help Apple navigate regulatory pressure.

In April, Cook said he planned to remain at Apple for years to come. "I am healthy. My energy is high, and I plan to be in this role for a long time," said Cook. He said he will support current hardware engineering chief John Ternus in any way necessary when Ternus takes over as CEO, and he plans to continue to offer knowledge and experience whenever it's needed. "Apple will be my top priority," he said. "It's who I am at my core, and I can't imagine it any other way."

Cook on Ternus

Cook yesterday said Ternus is the best choice to take over Apple.

The transition is going seamlessly, and I am beyond excited for John to step into his new role and lead Apple into its next era. He is truly one of a kind and there is no better person to take the helm of the company.

As I've said, I couldn't be more confident in his leadership, in our executive team, and in the extraordinary people at Apple who are determined to enrich the lives of our users all over the world. We have a bright future ahead, and I truly have never been more optimistic.

Ternus has been at Apple since 2001, when he joined the product design team. He became vice president of hardware engineering in 2013 and focused on the AirPods, Mac, and iPad. In 2020, he also took on the iPhone, and he became senior vice president of hardware engineering in 2021.
This article, "How Apple Changed Under Tim Cook: 15 Years in Numbers" first appeared on MacRumors.com

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Softness in mobile gaming and Apple's changes to the App Store business model in some countries impacted the performance of the ‌App Store‌, Apple CFO Kevan Parekh said during today's earnings call.


Apple's services revenue was $30.7 billion, a 12% increase over the $27.4 billion it earned in the year-ago quarter. Though the category saw growth, revenue came in under expectations, prompting analyst questions that led to Parekh's comments on the ‌App Store‌.

We also had some factors that impacted the performance of the App Store. We did see some headwinds in mobile gaming, and then keep in mind, we also made some changes to the App Store business model in certain countries, and in the U.S., we do continue to operate under a court ruling impacting the link-out transactions. But we're pleased the Supreme Court will hear our appeal.

There have been ‌App Store‌ fee updates in Japan and Brazil as of late, with Apple collecting no fees on link-outs in the U.S. and lower fees from alternative app marketplace apps in the EU. Despite the rule changes, the ‌App Store‌ still set a June quarter revenue record. Apple saw double-digit growth in cloud services, video, payment services, and advertising, with a record level of Apple Pay users.

During the call, Apple also said it now has 1.5 billion paid subscriptions, with transacting and paid accounts hitting an all-time high.

Parekh said it wasn't the ‌App Store‌ alone that impacted services revenue, and Apple also took a hit from foreign exchange. Last year, Apple also had the theatrical release of F1, and no equivalent release this year, making for a tougher compare.

Services growth in the September quarter is expected to be similar to the June quarter when excluding an approximately 2.5 percentage point foreign exchange headwind.
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Apple is planning to let users pay to increase their AI limits, with upgrade possibilities available through iCloud+.


During today's earnings call for the third fiscal quarter of 2026, Apple CEO Tim Cook said it's early, but the company expects to offer options for people who want to make heavy use of AI services.

In terms of what it means for compute cost, it's obviously early going for us, and so I don't want to say that we have a complete plan for that. We do believe there will be people that want to use it a lot and we will have some kind of upgrade possibilities on iCloud+ where people can buy up the stack on iCloud+. We'll see how the pickup for that is.

At WWDC, Apple said there would be daily usage limits on features like Image Playground, but increased access would be available through ‌iCloud‌+ plans. Cook's comments today suggest there may also be ‌iCloud‌+ add-ons specifically for AI usage.

Apple hasn't offered any details on what it might charge to increase AI limits, and that's information that we might get when iOS 27 launches in September. Features like Siri AI are expected to remain free to use.
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Apple didn't want to raise its prices but was forced to do so because of exponential increases in memory costs, Apple CEO Tim Cook said today during the company's Q3 2026 earnings call. Apple increased prices for Macs and iPads in June because memory prices have surged.

On the pricing front, you know, we reluctantly raised prices. I would say we did it because we're in what I would characterize as a 100-year flood on memory pricing with exponential increases in memory prices, so that was the rationale for it.

When asked whether Apple is aiming to protect gross profit dollars or product gross margins when considering pricing increases, Cook said it's multifactorial.

In terms of our philosophy on dollars or percentages, we look at units, revenue, and margin, and then come to a business judgment as to how to handle that, and so it's not a mathematical formula that gets us to a specific result, or just looking at one dimension of that. We look at all three dimensions and think about it over the long term instead of, you know, a 90-day clock.

Cook did not comment on whether Apple plans to raise iPhone prices when the iPhone 18 Pro models and first foldable launch this September, but multiple analysts believe prices will go up.

Cook said Apple is expecting to pay higher memory costs in the September quarter, though Apple will be able to partially offset it with lower costs on some non-memory components and a stockpile of inventory.
This article, "Tim Cook: Apple 'Reluctantly Raised Prices' Due to '100-Year Flood on Memory Pricing'" first appeared on MacRumors.com

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Apple CEO Tim Cook today confirmed that today's call was his last as CEO, with John Ternus set to become Apple's new CEO on September 1. Cook will transition to a new role as executive chairman when Ternus becomes CEO.

I just wanted to take a moment to say thank you to all of you, from our shareholders, particularly our long-term shareholders who have put their trust in us for so many years, to the analysts who have followed our company so closely. As you know, this will be my final earnings call, and John will lead these calls going forward.

Cook said the transition to Ternus is "going seamlessly," and he is excited for Ternus to lead Apple into its next era.

As I've said, I couldn't be more confident in his leadership, in our executive team, and in the extraordinary people at Apple who are determined to enrich the lives of our users all over the world. We have a bright future ahead, and I truly have never been more optimistic.

While Cook is stepping down as Apple's CEO, he said earlier this year that he plans to serve as executive chairman "for a long time." He said Apple will continue to be his top priority.
This article, "Tim Cook Thanks Shareholders on His Final Apple Earnings Call" first appeared on MacRumors.com

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Apple is expecting supply constraints to have a much bigger impact on revenue during the September quarter, Apple CEO Tim Cook said today during Apple's earnings call for the third quarter of 2026.


Supply constraints will impact the iPhone, iPad, and Mac. Cook said Apple is seeing less flexibility in the supply chain than normal and an issue with the availability of the advanced nodes that Apple's chips are produced on.

We continue to expect high levels of demand. However, with less flexibility in the supply chain, we expect the impact from the supply constraints to increase significantly sequentially.

He said the cause is not a regular supply issue, but a demand forecast issue. The iPhone and Mac are doing "remarkably better" than Apple expected.

Let me stress again. This isn't a partner or supplier issue... It's an incredibly strong iPhone and Mac product cycle that has really yielded a demand beyond our expectation.

Cook also commented on memory shortages. He said Apple paid more for memory in the June quarter than the March quarter, and the company expects to pay even higher memory costs in the September quarter. He said Apple will be able to partially offset the increased costs in two ways, but memory will continue to be problematic.

The first is, as you would expect, we have benefited from some carry-in inventory in the September quarter. However, we believe we will see decreasing benefit of this over time beyond the September quarter. The second is we're expecting lower cost on certain non-memory components. Then if you look beyond September, we see the market pricing for memory continuing to increase and have an increasing impact on our business. [...]
The DRAM market has three suppliers. Obviously, if there were more suppliers, that would be good, and it would help us on the supply side and perhaps the pricing side. It's unclear on the pricing side, but it could help on the supply side. And so we're evaluating all options.

Apple is planning to release new iPhone models in September, including the iPhone 18 Pro, ‌iPhone 18 Pro‌ Max, and its first foldable iPhone.
This article, "Apple Warns of Growing Supply Constraints for iPhone, iPad, and Mac" first appeared on MacRumors.com

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