Apple iPhone and Mac sales rise amid RAM shortage
Developed over time first seen 2 months ago
Apple reported strong third-quarter growth in iPhone and Mac sales despite a global RAM shortage, showing that demand for its hardware has remained resilient. However, the shortage is expected to tighten supply for iPhones, Macs and iPads and increase Apple’s memory costs, potentially adding pressure to device prices and availability.
iPhone revenue rose 22 per cent year-on-year to $54.25 billion and Mac revenue increased 29 per cent to $10.35 billion, contributing to total revenue of $109.4 billion. Apple had already raised prices for several Macs and iPads, including increasing the MacBook Neo from $599 to $699, while analysts expect the iPhone 18 could cost up to $200 more; services revenue reached $30.74 billion, with more than 1.5 billion subscribers. Tim Cook is due to step down as chief executive on 1 September, to be succeeded by hardware engineering vice-president John Ternus.
- Strong iPhone and Mac sales offset mounting memory-supply pressures.
- Apple expects shortages and memory costs to worsen next quarter.
- Tim Cook will be succeeded by John Ternus in September.
New here? Start with this
Apple is one of the world’s largest consumer technology companies, selling iPhones, Mac computers, tablets, watches and online services. Its business depends heavily on regular upgrades to its devices, with new iPhones usually introduced in the autumn.
RAM is a type of memory that helps phones and computers run apps and carry out tasks smoothly. A global shortage can make it harder and more expensive for manufacturers to obtain the parts they need, potentially leading to higher device prices or tighter supplies.
Tim Cook has led Apple since 2011, following co-founder Steve Jobs. John Ternus, who oversees the company’s hardware engineering work, has been closely involved in developing Apple’s devices and is set to take over as chief executive.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Apple’s results suggest that its hardware business remains unusually resilient: strong iPhone and Mac revenue growth indicates customers still see value in its ecosystem, design and integration even as components become harder to source. Supporters would argue that pricing adjustments can help protect product quality, investment and supply continuity, while Apple’s scale and customer loyalty put it in a better position than many rivals to manage shortages.
The case against
Sceptics would argue that the reported growth reflects demand before the full effects of RAM constraints and higher prices reach consumers, rather than proof that Apple is insulated from them. They would contend that further price rises, especially on a new iPhone, could strain household budgets, reduce upgrade rates and make Apple hardware less accessible, leaving future sales more vulnerable than the current quarter implies.
More coverage
Art Business Companies Culture Gadgets Technology
Read the full article at the source →
Originally published by The Verge as “Apple’s iPhone and Mac sales keep growing despite RAM shortages”.