Apple Expects 'Significantly Higher Memory Costs' to Impact iPhone, MacBook Neo

Apple reported strong Q2 results — $111 billion in revenue, up 17% — driven by “extraordinary” demand for the iPhone 17 and AI-enabled features. On the earnings call CEO Tim Cook warned of “significantly higher memory costs” for the remainder of 2026 as AI data-center buildouts squeeze memory supply, saying costs will rise beyond June and could affect iPhones, MacBook Neo, Mac Mini and Mac Studio availability and pricing. Apple says its main near-term constraint is advanced-node SOC availability, and some Mac lineup models may take months to restock. Management flagged trade-policy refunds will be reinvested into US innovation. The comments imply potential margin pressure or the need for price increases, though Apple’s current inventory and strong demand give it more flexibility than peers. The company’s partnership with Google (Gemini) on Siri and continued AI investment are positioned as growth drivers despite supply-headwind risks.