Apple's iPhone and Mac sales grow despite RAM shortages

Apple’s third-quarter earnings report, released on Thursday, revealed that iPhone sales jumped 22 percent to $54.25 billion and Mac sales increased 29 percent to $10.35 billion, driving the company’s overall revenue to $109.4 billion. Despite the gains, the company expects supply chain constraints to worsen in the coming months. Apple chief financial officer Kevan Parekh said during an earnings call that Apple expects “supply constraints to increase significantly” in the next quarter, impacting iPhone, Mac, and iPad. CEO Tim Cook warned that the company predicts it will “pay even higher memory costs” in the coming months. This marks Apple’s last earnings report under Cook, who is set to step down on September 1st. John Ternus, Apple’s vice president of hardware engineering, will take his place. In June, Apple raised prices across its Macs, iPads, and other devices in response to a RAM shortage expected to last through 2027 and beyond. The price hike included the new MacBook Neo, which now costs $699 instead of $599. Since its launch in March, the Neo has disrupted the affordable laptop market with its lightweight design and fast performance. Apple has not yet raised iPhone prices, but analysts predict that the iPhone 18 could cost up to $200 more when it launches this fall. Apple plans to widely release a more personalized Siri AI alongside the iPhone 18, allowing the assistant to answer questions about screen content, search across apps, and perform tasks like adding calendar events. This week, Apple also announced a new Upgrade program that lets users lease an iPhone, iPad, Apple Watch, or Mac for a fixed monthly price. Additionally, Apple reported $30.74 billion in services revenue, which includes subscriptions like Apple One and Apple TV. Parekh noted that Apple now has more than 1.5 billion subscribers across its services. Apple also reported $7.88 billion in wearables revenue and a lower-than-expected $6.2 billion in iPad revenue.