Apple’s iPhone and Mac Sales Keep Growing Despite RAM Shortages
Apple reports third-quarter revenue of $109.4 billion while warning of rising memory costs ahead.
Stock photo for illustration only, not from the actual event
- iPhone sales jumped 22 percent to $54.25 billion in the third quarter.
- Mac sales increased 29 percent to $10.35 billion.
- Tim Cook warns the company expects to pay even higher memory costs in coming months.
- John Ternus will succeed Cook as CEO starting September 1st.
Apple revealed on Thursday that its third-quarter iPhone and Mac sales posted strong growth despite a global memory shortage squeezing device makers, driving the company’s overall revenue to $109.4 billion. iPhone sales jumped 22 percent to $54.25 billion, while Mac sales increased 29 percent to $10.35 billion during the quarter.
However, the company warned that supply chain constraints are expected to worsen in the upcoming months. During an earnings call, Apple chief financial officer Kevan Parekh stated that the company anticipates supply constraints to increase significantly in the next quarter, impacting iPhones, Macs, and iPads alike.
Stock photo for illustration only, not from the actual event
Meanwhile, Apple CEO Tim Cook cautioned that the tech giant predicts it will pay even higher memory costs in the months ahead. This earnings report marks the final financial update under Cook's leadership, as he is scheduled to step down on September 1st, handing over the reins to John Ternus, Apple’s vice president of hardware engineering.
"Pay even higher memory costs"
To cope with a RAM shortage projected to last through 2027 and beyond, Apple raised prices across its Macs, iPads, and other devices in June, which included a price hike for the MacBook Neo from $599 to $699. While Apple has not yet increased iPhone prices, analysts predict that the upcoming iPhone 18 lineup could cost up to $200 more when it launches this fall alongside a deeply integrated and personalized Siri AI.
Apple's navigation through the global RAM shortage highlights the ongoing vulnerability of hardware supply chains to memory component pricing. Even as demand remains robust and services revenue surges, managing component inflation and executing a smooth leadership transition to John Ternus will be critical strategic hurdles for the company moving forward.
Additionally, Apple reported $30.74 billion in services revenue from subscriptions like Apple One and Apple TV, boasting over 1.5 billion subscribers. Wearables brought in $7.88 billion, while iPad revenue came in lower than expected at $6.2 billion.
Source: The Verge
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