Apple's Supply Bottleneck Threatens Future Growth Prospects

Apple (NASDAQ: AAPL) has seen significant revenue growth over the past year, with its stock returning 40% in that time. However, the company's future prospects are closely tied to its ability to close a massive supply gap.

In its most recent quarter, Apple posted record revenue of $109.4 billion, a 16% increase from the same period last year. iPhone sales surged 22% to $54.3 billion, while Mac sales reached $10.4 billion, a 29% increase.

Management has acknowledged that the company is facing significant supply chain constraints, which it expects will worsen in the September quarter. This has led to guidance for slower revenue growth of 9% to 11% for the upcoming period.

The company's supply bottleneck is capping its near-term revenue potential, but each incremental improvement in production capacity has the potential to convert pent-up demand into recognized revenue.