Apple Faces Mixed Outlook Amid Supply Chain Woes
Apple Inc. (NASDAQ:AAPL) is facing a mixed outlook due to strong June results and bold U.S. investment pledges, but also supply chain headwinds such as canceled all-glass iPhone tests and rising memory costs.
The company's June quarter revenue was $109.4 billion, up 16% year-over-year, with earnings per share at $2.02 and a gross margin of 50.1%. However, Apple faces higher component costs for the iPhone 18 Pro due to surging memory prices, which may account for around 40% of parts.
Apple has also pledged roughly $600 billion over four years for U.S. operations and suppliers, highlighting partnerships with chipmakers including Intel and Broadcom relevant to domestic manufacturing. The U.S. government has urged Apple to avoid buying memory chips from Chinese suppliers, but no enforcement steps or timelines have been given.