2026 Crisis Rages On, World's Smartphone King Reveals Its Fate
Apple has appointed John Ternus as the new CEO, replacing Tim Cook. Ternus will officially take over leadership of the Cupertino giant in September 2026.
In Apple’s latest earnings report, Cook remains the figure presenting the company’s current condition and the challenges it will face in the future. Cook emphasised the memory chip shortage crisis that is already affecting Apple.
According to Cook, the current impacts are just the beginning. “We believe memory prices will drive a greater impact on Apple’s business,” Cook said during the Q&A session following the earnings presentation last week.
Cook also repeatedly told analysts that Apple faced supply constraints throughout the last quarter of 2026. “We will continue to evaluate this,” he stated.
Apple’s earnings report was recorded positively. In almost all aspects, Apple surpassed analysts’ predictions and previous revenue guidance. The report was revealed a day after Meta and Microsoft stated that soaring memory prices would contribute to their higher capital expenditure forecasts for this year.
Across the technology industry landscape, leaders have voiced concerns about the surge in memory prices. It should be noted that the memory chip crisis, impacting shortages and price spikes, is suspected to stem from increased demand for chips in AI infrastructure development.
As a result, more manufacturers are focusing on developing AI chips and sidelining conventional chips for consumer electronics like laptops and smartphones. The chips needed in the market exceed those available, causing prices to skyrocket severely, both for AI and consumer electronics devices.
Established chip manufacturers like Micron have recorded growth of around 570% throughout last year. Micron has been striving to increase capacity, as have competitors like Samsung and SK Hynix.
Returning to Apple’s earnings report, Cook said revenue grew 17% for fiscal Q2, exceeding company estimates despite supply constraints.
Cook stated that the impact on the December 2025 quarter was minimal. The effects were more felt in the March 2026 period. For the quarter ending June 2026, Cook said the greatest impact will be seen on several Mac models, due to surging demand.
Analysts wanted to know Apple’s response to this crisis. However, Cook did not provide detailed answers. “We will look at the various options available,” he said.
Since January 2026, Wall Street has been asking several consumer electronics companies like Apple and Dell about strategies to face the memory shortage crisis. However, company executives have been more open about revealing the impacts rather than solutions to the situation.
“Apple shows that even the best companies cannot escape the crisis,” said Jake Behan, head of capital markets at Direxion.
“Tim Cook’s warning about much higher costs in the next quarter indicates how the surge in [memory chip] demand for AI has affected the industry as a whole,” he added.
So far, Apple has tended to avoid price increases for its products. In March, the company launched several new products, including the iPhone 17e, as well as updated iPad Air laptops with M4 chips in 11-inch and 13-inch sizes.
They also introduced the MacBook Neo, a low-cost laptop that Cook admitted has demand even higher than he anticipated. The next challenge of the memory chip shortage crisis will be Ternus’s concern. Major challenges await Apple.