After reporting fiscal Q2 revenue of $111.2bn, up 17%, and EPS of $2.01, Tim Cook said memory availability is Apple's primary constraint.
Cook said rising memory costs will increasingly affect Apple and may not ease soon, as AI demand and suppliers' shift toward high-bandwidth memory tighten supply.
The shortage could pressure margins, pricing and growth, though Apple said the impact had been minimal in the December quarter and only somewhat greater in March.
Can Apple's custom silicon design outsmart the global memory crisis threatening its future products?
Will the AI 'memory menace' make the next generation of iPhones and Macs unaffordable?
Apple faces a severe memory shortage driven by soaring AI demand that has shifted memory production toward data centers, causing a supply imbalance and soaring prices since late 2025. This shortage is limiting availability of high-memory Macs like the Mac mini and Mac Studio, forcing Apple to raise prices and discontinue lower-end models, which squeezes its profit margins. To manage costs, Apple is negotiating new supply deals, using cash reserves, and leveraging in-house chip design, but product price hikes and delays in AI initiatives like Siri are expected. The shortage is projected to persist into 2027, impacting consumers with higher prices and limited choices while pushing Apple to diversify its supply chain and invest in long-term solutions.