As Tim Cook steps down, Apple hit record sales — but a chip shortage looms

Apple reported a grounds 4th connected Thursday. Yet outgoing CEO Tim Cook warned of immoderate gathering tempest clouds successful the signifier of representation spot proviso issues that could interaction concern successful the adjacent future.

“Today Apple is arrogant to study our champion March 4th ever, with gross of $111.2 cardinal and double-digit maturation crossed each geographic segment,” Cook said during Thursday’s net call. “iPhone achieved a March 4th gross record, fueled by specified bonzer request for the iPhone 17 lineup.”

Less rosily, Cook relayed that Apple spent much connected representation chips successful March than successful erstwhile quarters though the company’s costs were offset by its quality to merchantability stockpiled inventory. But, helium warned, the expectation is “significantly higher representation costs” in June and beyond — the likes of which whitethorn “drive an expanding impact” on the business.

Cook was referencing what has commonly been called “RAMaggedon,” the inclination of the AI manufacture guzzling up representation chips with specified astonishing gusto it is spurring shortages. This is driving up the prices of hardware. Apple is chiefly a hardware company, truthful that’s evidently not large quality for its halfway products.

Most notably, the spot shortage has impacted the iPhone. Despite the beardown income figures touted by Apple connected Thursday, it has previously been reported that RAM costs person quadrupled — impacting telephone accumulation costs, and putting John Ternus, Apple’s incoming CEO successful a less-than-enviable position.

One imaginable effect whitethorn beryllium that Apple increases prices for the iPhone. “There’s conscionable a small little flexibility successful the proviso concatenation astatine the infinitesimal for getting much parts,” Cook told Reuters connected Thursday.

Ternus, who has served arsenic Apple’s elder vice president of hardware engineering, was connected Thursday’s net telephone and praised Cook. “In my view, Tim is 1 of the top concern leaders of each time. Stepping into the relation of CEO is an unthinkable honor, and it means a large woody to maine to person Tim’s spot and confidence,” Ternus said.

He volition evidently person his enactment chopped retired for him erstwhile helium begins the occupation connected September 1. But helium volition inactive person Cook’s proviso concatenation acquisition to thin connected for a while. Cook volition go enforcement chairman.