After its iPhone 16 took the smartphone world by storm by becoming the best-selling smartphone of 2025, Apple is back in the spotlight by revealing an exceptionally strong fiscal first quarter, securing a 23% year-over-year increase in iPhone sales.
As reported by Apple CEO Tim Cook, the company sold $85.27 billion worth of iPhones during this period, indicating immensely growing demand for the device.
That said, Apple is running out of enough application processors (APs) built into TSMC’s 3nm process node.
While demand for iPhone models is very high, Cook said, limited supply is restricting Apple’s ability to meet it. PhoneSand reported.
The chips in question are A-series application processors made by TSMC, and Cook mentioned that Apple is heavily involved in improving its access to these APs. Apple’s superiors did not make any projections beyond March.
Apple CFO Kevan Parekh told analysts that total revenue for the current quarter is expected to increase between 13% and 16% year over year.
In addition to supply and demand issues, Cook highlighted another concern regarding memory chips, which are evidently in high demand due to the rise of artificial intelligence data centers, which is causing shortages and price increases.
While admitting that Apple would also have to deal with rising memory chip prices, Cook assured that the company is exploring several options to address the situation.
