Apple ended its third fiscal quarter with strong results, but investors focused on the weaker outlook. Revenue rose by 16.4 per cent to $109.42 billion, with earnings of $2.02 per share. iPhones performed particularly well, with sales up by over 21 per cent, as did Mac computers, which saw growth of nearly 29 per cent. Despite this, the company’s shares fell by around 6 per cent in after-hours trading.
The reason is not weak demand, but limited availability of advanced processors and memory. Apple forecasts that revenue will rise by 9–11 per cent in the quarter ending in September, whilst the market had expected around 12 per cent. The company also warns that supply issues may affect iPhones, Macs and iPads, and that higher component costs will put pressure on margins.
Apple’s situation highlights a wider problem within the technology sector. Memory manufacturers are directing the bulk of their production capacity towards AI servers, where margins are higher. This is limiting the supply of chips for consumer electronics and driving up their prices. TrendForce assesses that the memory shortage is structural in nature and will not disappear any time soon.
For Apple, the potential consequences are clear: more expensive devices, longer delivery times and slower growth despite strong demand for its products. The company may increase orders from alternative suppliers, reschedule product launches or protect its margins by raising prices. Another risk is weaker growth in services, which were intended to stabilise the business during periods of slower hardware sales. The coming quarter will therefore show whether Apple’s purchasing power is sufficient, as AI infrastructure manufacturers compete ever more fiercely for the same components.
