Apple CEO Tim Cook holds up a new iPhone 17 Pro during an Apple special event at Apple headquarters in Cupertino, California, Sept. 9, 2025.
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Apple reported blowout first-quarter earnings on Thursday, and predicted growth of as much as 16% in the current quarter, matching the period that just ended.
Sales could be even better, Apple said, if the company could secure enough chips to meet its customers’ iPhone demands.
“We expect our March quarter total company revenue to grow by 13% to 16% year over year, which comprehends our best estimates of constrained iPhone supply during the quarter,” finance chief Kevan Parekh told analysts on Thursday.
On the company’s earnings call, analysts asked CEO Tim Cook several questions about Apple’s access to memory components, which have seen their prices skyrocket due to demand related to chips necessary for artificial intelligence data centers. That has caused a memory shortage.
Instead of dwelling on memory, Cook focused on rising demand and the company’s lean inventory. He said that what’s keeping Apple from making more iPhones is access to advanced node manufacturing for its A-series and M-series chips, which the company calls SoCs, or a system-on-chip.
Apple manufactures its advanced node chips with Taiwan Semiconductor Manufacturing Co., which dominates the market for leading node manufacturing. Apple said on Thursday that it was seeking manufacturing on the company’s 3-nanometer node.
“The constraints that we have are driven by the availability of the advanced nodes that our SoCs are produced on, and at this time, we’re seeing less flexibility in supply chain than normal, partly because of our increased demand,” Cook said.
Cook said Apple is in the process of increasing its access to supply and didn’t want to forecast beyond March.
Although this quarter’s supply shortage is related to advanced node chip manufacturing, Cook acknowledged that Apple would be affected by rising memory prices, and that the company was looking at “a range of options” for what it could do. But he declined to talk about the specifics of how Apple is grappling with the AI-driven shortage that is affecting nearly every device maker in the world.
“As always, we’ll look at a range of options to deal with that,” Cook said.
Apple said it expects gross margins to be between 48% and 49% in the March quarter, which at the midpoint would be a larger gross margin than in the December quarter. Cook said that rising memory prices had a “minimal impact” on Apple in the December quarter but would have a bigger effect in the March quarter.
Last year, Apple announced it would spend over $600 billion in the U.S. over five years, with a big chunk of that going toward a handful of companies who have committed to build chips in America, including TSMC, which has historically done most of its manufacturing in Taiwan.
On Thursday, Cook said Apple had sourced 20 billion chips from the U.S. in 2025, higher than the company’s previous target of 19 billion U.S. chips.
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