End of the Cook Era! Apple Warns of Slowing Q4 Growth, Admits 'Once-in-a-Century' Memory Chip Shortage

Global tech giant Apple Inc. released its latest quarterly earnings after US market close on the 30th, marking the final financial briefing for CEO Tim Cook, who has led the company for 15 years, before his official departure on September 1. Despite strong sales of flagship products iPhone and Mac driving revenue to a record high of over $109.4 billion (approximately NT$3.54 trillion), Cook issued a rare warning about global supply chains, stating the company is facing a 'once-in-a-century' shortage of high-end memory chips and packaging bottlenecks. Additionally, due to fourth-quarter revenue guidance falling below Wall Street expectations, Apple's after-hours stock price dropped sharply by 5 to 7 percentage points.

According to Apple's fiscal 2026 third-quarter (April to June) earnings report, the company achieved a 16.4% year-on-year revenue increase, reaching $109.42 billion, while net profit surged 27% to $29.79 billion (approximately NT$963.14 billion), both figures exceeding analyst forecasts. Notably, iPhone sales, the core product, rose逆势 by 21.7% to $54.25 billion, setting the best third-quarter record in company history.

However, Apple provided a cautious outlook for the upcoming fourth quarter (July to September), forecasting revenue growth of only 9% to 11%, below the 12% growth target previously expected by analysts at the London Stock Exchange Group (LSEG).

Apple Store in Ginza, Japan. (AP)

CFO Kevan Parekh and Cook explained to analysts that the slowdown is not due to weak market demand, but rather severe supply-side constraints. Cook admitted that demand for new iPhones and Macs has far exceeded expectations, but the entire tech industry is now frantically competing for advanced chip and memory capacity, particularly due to the DRAM crowding-out effect triggered by AI data centers, which has left Apple's supply chain unable to meet strong order demand.

Cook Urges Search for Alternative Memory Suppliers

"We are currently seeing very significant supply constraints, and the flexibility to correct them is extremely limited. This global surge in memory chip prices and capacity tightness is like a once-in-a-century flood."

Cook also revealed that Apple is actively evaluating all possible alternative solutions and seeking additional high-end memory chip suppliers to resolve the urgent situation in a timely manner.

Due to a sharp increase in component costs, Apple has already raised prices for certain Mac and iPad models in June. Wall Street analysts widely expect that as memory prices continue to rise and TSMC's advanced packaging capacity remains tight, the new generation of iPhones launching in September will likely face pricing pressure, and consumers may see unexpectedly high price tags.

Apple's Senior Vice President of Hardware Engineering, John Ternus, will officially take over as CEO on September 1, succeeding Cook. (X platform)

New CEO Faces Immediate Challenges

After 15 years at the helm, Cook will transition to Executive Chairman of Apple's board of directors on September 1, handing the CEO role to current Senior Vice President of Hardware Engineering, John Ternus.

The new CEO, taking charge of a multi-trillion-dollar tech empire, will face immediate challenges upon assuming office in September, including managing the fall product launch event, delivering the new AI-powered Siri integrated with Google Gemini technology, and addressing the 'once-in-a-century' chip supply chain crisis while mitigating pricing pressures—key tests that the new CEO cannot avoid.