Apple Records Highest Quarterly Sales in History, Warns of Chip Shortage Looming

**Outgoing CEO Tim Cook's parting words on April 30, 2026, revealed a mixed bag of news for the tech giant as it announced record-breaking sales, but also warned of an impending chip shortage that may affect its future business.

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Apple reported a record quarter on Thursday, with revenue reaching $111.2 billion and double-digit growth across every geographic segment. The company's iPhone achieved a March quarter revenue record, driven by extraordinary demand for the iPhone 17 lineup. However, the news wasn't all rosy, as Cook relayed that Apple spent more on memory chips in March than in previous quarters, despite being able to offset the costs by selling stockpiled inventory. The company's expectation is "significantly higher memory costs" in June and beyond, which may "drive an increasing impact" on the business.

"Today Apple is proud to report our best March quarter ever, with revenue of $111.2 billion and double-digit growth across every geographic segment," Cook said during Thursday's earnings call. "iPhone achieved a March quarter revenue record, fueled by such extraordinary demand for the iPhone 17 lineup."

The chip shortage, commonly referred to as "RAMageddon," has been affecting the AI industry's demand for memory chips, leading to shortages and increased prices. This trend may have significant implications for Apple's core products, particularly the iPhone. Cook noted that RAM costs have quadrupled, impacting phone production costs and putting the incoming CEO, John Ternus, in a challenging position.

• One possible result of the chip shortage may be that Apple increases prices for the iPhone.
• Cook warned that there's "just a little less flexibility in the supply chain at the moment for getting more parts."

Ternus, who will take over as CEO on September 1, praised Cook's leadership during the earnings call, calling him "one of the greatest business leaders of all time." Cook will assume the role of executive chairman, providing Ternus with valuable supply chain experience as he takes the reins.

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