Apple says iPhone demand is strong, but supply problems could worsen ahead of iPhone 18 Pro launch
Apple has delivered another strong financial quarter, with iPhone and Mac sales helping the company post a 27 per cent jump in profit. But there
Apple has delivered another strong financial quarter, with iPhone and Mac sales helping the company post a 27 per cent jump in profit. But there is a catch. While people are still lining up to buy Apple's products, the company says it may struggle to make enough of them over the next few months. In its latest earnings call, Apple warned that supply constraints for the iPhone, Mac and iPad are expected to increase "significantly" in the September quarter, meaning some products could become harder to get if demand continues at the current pace.
Read Full Story Apple says demand isn't the problem Apple's latest earnings report paints a mixed picture. The company saw double-digit growth in iPhone and Mac revenue, while overall profit rose sharply. However, iPad revenue slipped 5 per cent compared to the same period last year. Despite that, Apple says customers are still buying its products in large numbers. The problem is not a lack of interest but the company's ability to keep up with demand. During the earnings call, Apple CFO Kevan Parekh said the company expects supply constraints to "increase significantly" in the coming quarter.
He added that the iPhone, Mac and iPad are all expected to be affected. In simple terms, Apple believes it can sell more devices than it may be able to produce. So even if customers are ready to buy, some products could face limited availability. There is another challenge too Apart from supply issues, Apple is also dealing with what it calls foreign exchange headwinds. That is simply a fancy way of saying changing currency exchange rates could reduce the company's revenue when sales from other countries are converted into US dollars.
According to Parekh, currency fluctuations alone are expected to reduce Apple's revenue growth by around 2.5 percentage points in the next quarter. Even with these challenges, Apple expects its overall revenue to grow between 9 per cent and 11 per cent year over year. The warning comes just weeks before Apple's expected September event, where the company is widely expected to unveil the iPhone 18 Pro lineup. Ends
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