Apple's Record Quarter Isn't Enough to Calm Wall Street Apple Inc.BATS:AAPLmoonyptoApple delivered another strong quarter, but investors were focused on what comes next.. Revenue for Q3 rose 16% year over year to $109.4 billion, beating expectations by about $500 million. Earnings per share came in at $2.02, topping estimates by $0.13. While tariff refunds added $0.11 per share, Apple's core business still outperformed forecasts. Even so, the stock fell roughly 7% after the earnings report The company set June quarter records across several key businesses. iPhone revenue climbed 22% to $54.3 billion, Mac sales surged 29% to $10.4 billion, and revenue from China rebounded 22% to $18.8 billion. Services continued to grow, though at a slower pace, rising 12% to $30.7 billion 🍎Tim Cooked? This was Tim Cook's final earnings call before John Ternus takes over as CEO in September. Cook leaves with demand running higher than Apple can currently supply He said stronger than expected sales of iPhones and Macs have stretched the company's ability to secure enough advanced chips. The shortage hit Macs this quarter and is expected to affect iPhones, Macs, and iPads in the September quarter.. Apple still expects revenue to grow between 9% and 11% next quarter, with iPhone sales increasing in the mid-teens, but that guidance fell short of Wall Street's expectations Another challenge is rising memory costs. Cook described the current market as a "hundred year flood," pointing to sharp price increases that have already led Apple to raise prices on some Mac and iPad models. Without the benefit of tariff refunds, gross margins slipped from the previous quarter, and management expects another decline as lower cost inventory is used up Apple is also spending aggressively on artificial intelligence. Research and development expenses increased 32% year over year to $11.7 billion, reflecting the company's push to strengthen its AI capabilities. Cook also hinted that advanced Siri features could eventually encourage more customers to upgrade to higher tier iCloud+ subscriptions, giving investors an early look at how Apple may generate revenue from its AI strategy John Ternus steps into the role with one of Apple's strongest product lineups in years, but he also inherits a business facing tighter chip supplies and rising component costs. The next iPhone launch will be an important test of whether Apple can balance strong demand, protect its margins, and prove its AI strategy can compete with the rest of the industry.