Tech giant Apple warned on July 30 that it expected a "significant" financial hit from growing supply constraints for its most popular products, including Mac computers and tablets, iPhones and iPads. The constraints are largely to do with the availability of key chip components of Apple's products.
BBC News reports that Apple shares fell in after-hours trading by more than 7%, even as the company showed a 16% increase in revenue to $109 billion, thanks in part to unexpectedly high iPhone sales, and a 26% increase in profits to $29 billion.
Tim Cook, who is leaving as CEO, said that supply constraints had already shown up with the availability of Mac computers, and were expected widen to affect iPhone and iPad products.
"We're seeing some very significant constraints currently with limited flexibility in the supply chain to remedy it," Cook said.
However, the problem is more about demand than supply, mainly for iPhone and Mac products, Cook said. Sales of those products grew 22% and 25% respectively during Q2 2026.
"This is not a regular supply issue, it's a demand forecast issue to be candid," Cook added. "We've got a quarter ahead where we'll be scrambling on the supply side."
In August 2025, Apple increased its investment commitment related to domestic manufacturing in the U.S. to $600 billion, and announced the launch of its American Manufacturing Program, formulated to move more of Apple’s supply chain and advanced manufacturing to the U.S.
