As Tim Cook steps down, Apple hit record sales — but a chip shortage looms

Apple reported a record-breaking March quarter with revenue hitting $111.2 billion, fueled by 'extraordinary' demand for the iPhone 17 lineup. However, outgoing CEO Tim Cook tempered the celebration with a warning about a looming global memory chip shortage that could impact production in the second half of the year. Cook noted that while Apple successfully navigated supply chain hurdles in the first quarter by utilizing stockpiled inventory, the rising costs of RAM—which have reportedly quadrupled—are becoming a significant headwind.

This quarterly report marks one of Cook's final major presentations before John Ternus takes over as CEO in September. The results showed strong double-digit growth across all geographic segments, particularly in China, where sales rose by 28% year-over-year. As Apple transitions its leadership, it faces the 'RAMageddon' crisis driven by the AI industry's insatiable demand for high-performance memory chips. This supply crunch may force Apple to reconsider its pricing strategy for upcoming products to maintain its industry-leading margins.