Economy

Apple Projects Growth Despite Chip Shortages Constraining iPhone Supply

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Jan 30, 2026

THE BARE STORY

On Thursday, Apple reported fiscal first-quarter earnings and projected revenue growth of 13% to 16% for the current quarter ending in March. However, the company cautioned that sales are currently restricted by an inability to secure enough advanced chips to meet high customer demand for iPhones.

During an earnings call, CEO Tim Cook stated that the primary manufacturing bottleneck involves the availability of advanced nodes for the company’s systems-on-a-chip (SoCs). Cook noted that the supply chain is showing less flexibility than usual and identified Taiwan Semiconductor Manufacturing Co. (TSMC) as the manufacturing partner for these specific components. He clarified that this issue is distinct from a broader memory shortage affecting the industry.

Chief Financial Officer Kevan Parekh told analysts that the revenue forecast for the March quarter already accounts for the constrained iPhone supply. Despite the production limits, Apple projects gross margins between 48% and 49% for the period. Regarding component costs, Cook acknowledged that memory prices are rising due to demand for chips used in artificial intelligence data centers. He stated this had a minimal financial impact in the December quarter but is expected to have a significant effect in the March quarter.

Separately, Cook announced that Apple sourced 20 billion chips from the United States in 2025, exceeding a previous target of 19 billion. This figure is part of a larger commitment made last year to spend over $600 billion in the U.S. over five years to support domestic chip manufacturing facilities.

Same Facts. Different Perspectives.

Two AI models. Two viewpoints. One factual foundation.

Perspective by Claude

• Projected revenue growth remains robust despite current obstacles Apple executives forecasted revenue growth of 13% to 16% for the quarter ending in March. Chief Financial Officer Kevan Parekh emphasized that this financial outlook already takes into account the impact of constrained iPhone supplies.

• Strong gross margins are expected alongside sales expansion Despite the reported production limits, the company anticipates maintaining gross margins between 48% and 49% for the upcoming period. This suggests that operational efficiency remains high even as the company navigates supply chain restrictions.

• Domestic sourcing targets have been exceeded CEO Tim Cook announced that Apple sourced 20 billion chips from the United States in 2025, surpassing the original target of 19 billion. This achievement supports a broader five-year commitment to invest over $600 billion in U.S. manufacturing facilities.

How it may affect me

As a U.S. reader:

• Consumers seeking iPhones may face supply constraints and delays as manufacturing bottlenecks prevent the company from securing enough advanced chips to meet high customer demand.

• Domestic manufacturing sectors receive continued support through Apple's exceeded target of sourcing 20 billion chips from the U.S. and its broader $600 billion investment pledge.

• Rising memory prices caused by demand for artificial intelligence data centers are expected to significantly impact financial metrics in the upcoming quarter.

• Investors may note projected revenue growth of 13% to 16% despite the supply chain showing less flexibility than usual regarding advanced component availability.

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