Tim Cook warns about soaring chip prices and impacts on Apple sales
Apple CEO Tim Cook issued a blunt warning about the company’s future prospects, highlighting that the company faces serious constraints in the supply of components, especially memory chips. The statement was made during his last earnings call as CEO on July 31, 2026, where he described the situation as a “century-old flood” in chip prices. The news directly impacted the sales forecast for iPhones and Macs in the coming months.
Supply chain constraints cause concern
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Tim Cook admitted that Apple is navigating a period of “very significant constraints” and with “limited flexibility” in its supply chain. According to him, the difficulty in acquiring the advanced processors needed for its products is already resulting in lower revenue. Cook stated that there will be a quarter of supply difficulties, a reality that the technology giant will need to face in the coming months.
Business slowdown and financial forecasts
The shortage of components directly impacts Apple’s financial projections. iPhone sales growth, which represents approximately half of the company’s revenue, is expected to slow significantly.
- iPhone Sales:Growth between 15% and 15%, below the 22% recorded in the previous quarter.
- Total revenue:Increase between 9% and 10% compared to the previous year, falling short of the 12% rate expected by analysts.
Additionally, Apple reported that gross profit margins, which were 48% of revenue last quarter (excluding fee refunds), will be under pressure in the current period.
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Impact on the stock market after the announcement
Apple shares reacted negatively to the financial statements and forecasts. In the extended trading session on July 31, the company’s shares fell by up to 8% after the release of the financial results. Although they recovered some of their losses, shares closed down approximately 6% from their closing price of $333.85.
Despite the recent drop, Apple, valued at $4.9 trillion, has been one of the best-performing technology companies in 2026, with its shares up 23% year to date.
Connection between artificial intelligence and rising chip prices
Even though Apple has taken a more cautious approach to the artificial intelligence (AI) race compared to competitors like Meta, Google, Microsoft and Amazon, the company is not immune to its effects. Rising demand for memory chips to power AI data centers is causing a global shortage and driving up prices to unprecedented levels.
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This scenario has already affected other technology giants. Recently, shares of Alphabet, Google’s parent company, plummeted 7% after the company increased its investment forecast for the year to more than US$200 billion. Meta also suffered a similar drop in its shares, reflecting the high costs associated with AI infrastructure.
Apple’s future under new leadership
Despite current challenges, Tim Cook reiterated his optimism regarding Apple’s future opportunities. “I’m extremely excited,” said Cook, who has led the company for 15 years. He is preparing to hand over the role of CEO to John Ternus in September, marking a new phase in the company’s management amidst a scenario of major technological and economic transformations.
