Apple Faces Chip Supply Constraints Despite Record Revenue
Apple reported a record $143.8 billion in Q1 revenue, marking a 16% year-over-year increase, with projected growth of 13-16% for the current quarter. Despite strong demand for iPhones, the company struggles with supply chain bottlenecks, particularly in securing advanced chips from TSMC.
Production of 3-nanometer chips is constrained by limited capacity at Taiwan Semiconductor. Rising memory chip prices, driven by AI data center demand, are expected to pressure margins this quarter. Apple exceeded its U.S. chip sourcing target, procuring 20 billion chips in 2025 against a 19 billion goal.
CEO Tim Cook emphasized that the challenge lies not in waning consumer interest but in meeting demand due to semiconductor shortages. The tech giant's earnings surpassed expectations, with EPS at $2.84 against $2.66 forecasts.
