Apple has warned that severe memory and advanced chip shortages could limit future growth, despite reporting record iPhone sales and preparing for a major leadership change.
Apple has warned that major supply constraints affecting advanced chips and memory components could impact future sales of its most important devices.
Shares in the iPhone maker fell more than five per cent in after-hours trading after the company forecast weaker-than-expected revenue growth for the coming quarter.
Apple said it expected revenue to rise between nine per cent and 11 per cent compared with the same period last year, below Wall Street expectations of around 12 per cent.
Chief executive Tim Cook said the company was facing “very significant” supply challenges, with limited ability to quickly adjust production.
Cook told analysts: “We’re seeing some very significant constraints currently with limited flexibility in the supply chain to remedy it.”
The shortages are affecting the wider technology industry as companies compete for advanced processors and memory needed for artificial intelligence systems and next-generation consumer devices.
Cook said the main issue was a lack of flexibility in the advanced chipmaking supply chain, particularly for Apple’s silicon processors used in products such as Macs.
He told Reuters: “If you look at the root causes, it’s that we’re having an incredibly strong product cycle beyond our expectations, and the advanced chipmaking supply chain just fundamentally has less flexibility in it to meet the high levels of demand.”
Despite the concerns, Apple reported strong results for the latest quarter. iPhone revenue jumped 21.7 per cent year-on-year to $54.3 billion (£40.3 billion), marking a record third quarter for the company’s flagship product.
However, analysts expect rising component costs and supply pressures to contribute to higher prices across Apple’s product range. The company has already increased prices for some Mac and iPad models, with further iPhone price rises anticipated.
Apple is also preparing for its biggest leadership change in more than a decade. The results call marked Cook’s final earnings appearance as chief executive before he retires after 15 years leading the company.
John Ternus, Apple’s head of hardware engineering, will take over as CEO on September 1.
The company has largely avoided the market turbulence affecting other technology giants heavily investing in artificial intelligence infrastructure.
While firms including Google and Meta have increased spending on AI data centres, Apple has maintained stronger cash flow without committing to similar levels of investment.
Thomas Monteiro, an analyst at Investing.com, said: “Apple keeps standing out as the safe haven in the storm.”
Apple warns chip shortages could hit future sales as supply constraints grow
