Apple Lifts iPhone Revenue to $54.25 Billion as Q3 Shipments Jump 15.3%

Q: Will the looming global chip shortage force Apple to finally hike iPhone prices after this record-breaking quarter?

Yes—Apple now looks more likely than not to raise iPhone prices, probably with the next launch cycle rather than immediately on current models. The record quarter does not remove the pressure. Apple’s iPhone revenue rose 22% to $54.25 billion, ahead of shipment growth of about 15%, showing that a richer mix of Pro models and higher average selling prices already lifted results without a formal base-price increase. That gives Apple some cushion, but not enough if memory costs keep climbing. The bigger issue is supply. Tim Cook has said price increases are “unavoidable” because the AI boom has driven a severe memory crunch, and Apple has warned that constraints around advanced chips and memory will worsen in the next quarter. Reuters, the Wall Street Journal and other reports all point to Apple paying more for memory now and expecting even higher costs ahead. Apple has already raised prices on Macs and iPads, leaving the iPhone as the main major product line still largely protected. That does not mean Apple must raise every iPhone price at once. The likelier path is selective increases on the iPhone 18 Pro and Pro Max, where demand is strongest and buyers are less price-sensitive, while older models may hold steady or see smaller changes. Analyst estimates vary widely, from roughly $50 to as much as $200 or more on high-end models. So the shortage probably won’t erase iPhone demand, but it is increasingly likely to end Apple’s long effort to avoid a direct iPhone price hike.

1 articles · Updated · Yahoo Finance · Aug 5

$54.25 billion in iPhone revenue marked a nearly 22% year-over-year gain in Apple’s fiscal third quarter, beating analyst expectations of $53.86 billion and helping drive a broader earnings and sales beat.
IDC estimated iPhone shipments rose 15.3% in the second calendar quarter even as global smartphone shipments fell 6.7%, making Apple one of only two major vendors to post growth.
That gap between revenue growth and unit growth suggests Apple raised average selling prices while still expanding volumes, extending a second straight quarter of outperformance in a weak handset market.
Upgrades to newer models appear to be driving the surge, with demand tied to Apple Intelligence finally gaining traction after a slow start and the iPhone 17 launch late last year.