Overseas Media: AirPods Pro 3 Supply Shortages May Have Cost Apple $230 Million in Last Quarter’s Revenue

According to CNMO, Apple’s CFO Kevan Parekh said during the company’s fiscal 2026 first-quarter earnings call that supply constraints for the AirPods Pro 3 had a noticeable impact on revenue in Apple’s “Wearables, Home and Accessories” segment. The segment delivered $11.5 billion in revenue for the quarter, down 2% year over year. Parekh added that without the AirPods Pro 3 supply limitations, this category would have posted growth. Based on those remarks, some overseas media outlets estimate that the shortage may have cost Apple roughly $230 million in revenue last quarter.

Foreign reports note that this decline also marks the tenth consecutive quarter in which Apple’s “Wearables, Home and Accessories” segment has not achieved year-over-year growth. The category spans a wide range of products—including Apple Watch, HomePod, and Apple Vision Pro—yet a supply issue affecting a single flagship item was significant enough to weigh down a multi-billion-dollar business line. That dynamic underscores how critical the AirPods franchise remains to Apple’s overall performance.

Parekh’s comments surprised some observers, especially since there were few widespread reports of major inventory shortages or extended shipping times in late 2025. In many ways, that contrast further highlights just how central the AirPods lineup is to Apple’s profitability within this segment.

Still, Apple CEO Tim Cook offered an upbeat view of demand during the same call, praising the AirPods Pro 3’s reception in the market. He said customers have responded strongly to its immersive sound quality, best-in-class active noise cancellation, and noticeably improved comfort. Cook also pointed to features such as real-time translation as a capability that is beginning to change how people communicate.