Apple expects “significantly higher memory costs” to impact iPhone and MacBook Neo devices

Apple expects “a significant rise in memory costs” heading into the remainder of 2026, CEO Tim Cook said Thursday during Apple’s second-quarter earnings call, as the tech giant faces a decline in… Memory deficiency Which affects the rest of the industry.

Cook – who is he? Step down from the position of CEO On September 1, it will be replaced by John Ternusthe company’s senior vice president of hardware engineering, said Apple was partially unaffected by the memory shortage during the quarter, as it already had plenty of devices in stock. But after June, costs will rise.

“We believe the cost of memory will have an increasing impact on our business, and we will continue to evaluate that,” Cook said. “We will look at a range of options.”

like Artificial intelligence data centers As they continue to be designed to meet the growing demand for AI services, their need for memory and other components has reduced the supply of consumer devices, driving up the costs of laptops and phones such as MacBooks from Apple and iPhonebesides External storage products.

Nabila Popal, senior research director at the International Data Corporation, said analysts are looking at how Apple will meet demand amid increasing memory costs and supply constraints in the coming quarters.

“While Apple remains better positioned than its competitors to manage the memory crisis and get the supplies it needs, the key question will be to strategically determine the ideal balance between increasing prices and maintaining profitability or focusing on gaining share by not increasing prices,” Bhopal said.

Cook said the current primary limitation is “the availability of the advanced nodes on which our security operations centers are produced,” rather than memory, which has affected iPhone. Going forward, he said this will likely also impact Mac mini, Mac studio and MacBook Neo In particular, given AI tools and their popularity.

Customers have pounced on Mac Mini and Mac Studio desktops for use with AI clients, and it may take several months for the supply of these computers to recover, Cook said. He did not say when the MacBook Neo would be restocked to meet demand.

“Customer response to the Mac Neo has been off the charts, with higher-than-expected demand and a record customer record in the March quarter,” Cook said.

Overall during the quarter, Apple reported revenue of $111 billionUp 17%, which Cook attributed largely to “exceptional demand for the iPhone 17 lineup.”

During the call, Cook highlighted Apple intelligence Built-in artificial intelligence features iPhone 17 As the driver of its popularity, along with the improved camera, design, performance and durability.

“We are seeing double-digit growth in the majority of markets we track,” Cook said. “And we set a new record in the March quarter for developers as well.”

With US companies now able to apply Refunds on fees They paid the US government as a result of foreign tariffs imposed by President Donald Trump in 2025, and Cook said Apple is pursuing the process and will “reinvest any amount we receive into American innovation and advanced manufacturing.”

Trump had invoked the International Emergency Economic Powers Act of 1977 to justify increasing taxes on goods imported from around the world last year, but the Supreme Court overturned those tariffs in February. Before the ruling – which said the Emergency Powers Act does not allow tariffs to be used to address national emergencies – the US government collected approx $166 billion revenue From American companies, including Apple.

Apple is artificial intelligence

When asked about AI, Apple noted that it is “obviously investing more” across operating expenses and R&D. While AI is “a really important investment area for Apple,” the company will explore it gradually in addition to developing and releasing its prototype product.

According to industry analyst Emarketer, Apple’s AI strategy and partnership with Google Gemini for Siri It will be vital going forward.

“The results indicate that Apple continues to weather the global memory chip crisis, indicating the resilience of the tech giant’s supply chain,” Jacob Born, senior technology analyst at Emarketer, said in a statement. “The question is whether new CEO John Ternos can translate this momentum into a credible AI strategy (and) Apple’s willingness to lean on outside AI innovators.”

During the earnings call, Cook won’t be briefed on what to expect next from… Fix Siri AI He did not comment on the emergence of AI agents in phones (and how that might play out in future iPhones). But he acknowledged that cooperation with Google in the field of artificial intelligence is going well, saying: “We are happy with the way things are, and we are happy with the work we are doing independently as well.”

Although Cook will be CEO for another full quarter and subsequent earnings report, when asked if he had any advice for his successor, Ternos, he noted that one of the most important decisions he will make is where he will spend his time — ideally, where it will be of greatest benefit to the company and its customers. Also, never forget Apple’s North Star.

“We aim to make the best products in the world that truly enrich the lives of others,” Cook said. “If you stay focused on that and make your decisions around that, it will produce great work, and we’ll be able to build more products and do it again.”