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 large wind clouds successful nan shape of representation spot proviso issues that could effect business successful nan adjacent future.

“Today Apple is proud to study our champion March 4th ever, pinch 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 nan iPhone 17 lineup.”

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

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

Most notably, nan spot shortage has impacted nan iPhone. Despite nan 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 consequence whitethorn beryllium that Apple increases prices for nan iPhone. “There’s conscionable a small little elasticity successful nan proviso concatenation astatine nan 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 nan top business leaders of each time. Stepping into nan domiciled of CEO is an unthinkable honor, and it intends a awesome woody to maine to person Tim’s spot and confidence,” Ternus said.

He will evidently person his activity trim retired for him erstwhile he originates nan occupation connected September 1. But he will still person Cook’s proviso concatenation acquisition to thin connected for a while. Cook will go executive chairman.