Apple's New CEO Faces Tough FY27 as iPhone Supply Chain Weakness Looms

Apple's new CEO John Ternus is entering a challenging FY27, according to Lynx Equity. The firm warns that Apple's major issue is the iPhone supply chain, which has been weakened by the company raising the DRAM in the new iPhone 18 by 50% without securing enough memory and flash supply.

Lynx believes this shortfall will weigh on Apple's FY27 performance and take around a year to fix. The analyst also expects Samsung Phones to challenge Apple, with value shoppers comparing the new iPhone 18 models directly to Samsung's latest phones, leading to 'sticker shock' for buyers due to Apple's higher prices.

The firm also predicts that Apple's foldable iPhone will slip into 2027, as Samsung controls most of the foldable display supply. Additionally, Lynx expects Samsung to flood the market with low-cost A-series phones priced under $250, which could sell in the millions and compete directly with Apple's refurbished iPhones.

In China, Lynx said Huawei has taken the top spot by tapping local memory fabs, while Oppo and Vivo have locked up DRAM and flash supply from Taiwan and Japan. The firm expects Apple's ranking in China to fall in FY27 as rivals secure more component supply.