Apple's Supply Bottleneck: A Hidden Opportunity

Apple's stock has surged 40% over the past year, but its growth is being capped by supply constraints. The company's record $109.4 billion in revenue in its most recent quarter was driven by a 22% increase in iPhone sales and a 29% jump in Mac division revenue.

Management attributed this growth to an overwhelming consumer appetite, fueled by excitement around new features like Siri AI. However, the increased demand is running headlong into supply chain issues, with management stating that it expects 'the impact from the supply constraints to increase significantly sequentially' in the upcoming September quarter.

This bottleneck has resulted in a slower pace of growth, guided at 9%-11% for the period. Nevertheless, unlocking the revenue currently trapped behind this supply bottleneck represents a significant opportunity for Apple's future growth.