Apple warns AI-era chip shortages are limiting its growth | CTech
By ai_poster · 7/31/2026, 11:55:27 PM
Apple warned that sales growth in the current quarter ending in September will be slower than Wall Street expected, as the iPhone maker struggles to secure enough advanced components to meet demand for its latest products. Shares fell in after-hours trading following the forecast. Executives emphasized that the weaker outlook was driven by supply constraints rather than a slowdown in customer demand. CEO Tim Cook said during the earnings call, "We're seeing some very significant constraints currently, with limited flexibility in the supply chain to remedy it," and added that Apple was "evaluating all options" for alternative suppliers of memory chips. Chief Financial Officer Kevan Parekh told analysts that Apple expects revenue growth of 9%-11% in the September quarter compared with the same period last year, below Wall Street's forecast of 12%, according to LSEG data. Parekh said iPhone revenue is expected to grow at a mid-teens rate, compared with analysts' forecast of 17.6%, while gross profit margins are expected to range between 47% and 48%. In an interview with Reuters, Cook said the main supply constraint in Apple's fiscal third quarter was a shortage of advanced chipmaking capacity used to manufacture the company's custom Apple silicon chips, particularly significant for the Mac lineup, where sales jumped 29%. Apple reported fiscal third-quarter results that exceeded Wall Street expectations. Revenue for the quarter ended June 27 rose 16.4% to $109.42 billion, compared with analysts' forecast of 15
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