Apple Faces Margin Squeeze from Memory Surge Despite Chip War Dominance

Apple confronts rising margin risks from AI-driven memory chip price hikes nearly doubling in Q1, as Nintendo cuts Switch 2 forecasts and raises prices, with impacts set to hit beyond the June quarter. This tempers robust Q2 FY2026 results of $111.18B revenue (+16.6% YoY), $57B iPhone sales (+22%), EPS $2.01 beat, $100B buyback, and Mac shortages from OpenClaw AI demand. Apple dominated the 2026 chip war by locking >50% of TSMC's 2nm capacity and HBM supplies, while pursuing Intel/Samsung diversification and shifting flagship focus to AI wearables.