Customers inside an Apple store in New York. (Courtesy: Bloomberg)
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Moneycontrol30-01-2026, 08:41

Apple's Record Sales Clouded by Rising Costs and Supply Chain Fears

  • Apple reported record quarterly sales and an upbeat forecast, exceeding Wall Street expectations for the current period.
  • Despite strong iPhone 17 demand and growth in services, rising component costs, particularly memory prices, threaten to squeeze gross margins.
  • The company faces supply chain constraints for iPhone's 3-nanometer processor and AirPods Pro 3 components.
  • Apple regained its position as the No. 1 smartphone seller globally, surpassing Samsung Electronics Co.
  • Weak spots included Mac and wearables businesses, and concerns persist regarding Apple's artificial intelligence strategy.

Why It Matters: Apple's strong sales are overshadowed by increasing costs and supply chain issues impacting future profitability.

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