Cook said Apple is seeing less flexibility in the supply chain than normal and an issue with the availability of the advanced nodes that Apple's chips are produced on.
What happened
Supply constraints will impact the iPhone, iPad , and Mac. Cook said Apple is seeing less flexibility in the supply chain than normal and an issue with the availability of the advanced nodes that Apple's chips are produced on.
Practical impact for readers
We continue to expect high levels of demand. However, with less flexibility in the supply chain, we expect the impact from the supply constraints to increase significantly sequentially.
Details worth verifying
He said the cause is not a regular supply issue, but a demand forecast issue. The iPhone and Mac are doing "remarkably better" than Apple expected.
Who should act or wait
Let me stress again. This isn't a partner or supplier issue. It's an incredibly strong iPhone and Mac product cycle that has really yielded a demand beyond our expectation.
What is still unclear
Cook also commented on memory shortages. He said Apple paid more for memory in the June quarter than the March quarter, and the company expects to pay even higher memory costs in the September quarter. He said Apple will be able to partially offset the increased costs in two ways, but memory will continue to be problematic.
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