Apple warns supply constraints to hit Mac, iPhone, iPad

Apple warned on July 30, 2026, that it expects significant supply constraints to hit its Mac, iPhone, and iPad products. The alert caused its shares to drop more than 7% in after-hours trading, even as the company reported a 16% revenue increase to $109 billion and a 26% profit jump to $29 billion for the June quarter. Outgoing chief executive Tim Cook said that while Mac availability had already been affected this year, the constraints would worsen and spread to iPhones and iPads. He attributed the core issue to unexpected demand, particularly for iPhones and Macs, with sales growing 22% and 25% respectively during the quarter. Cook described it as "a demand forecast issue to be candid," adding that the company would be "scrambling on the supply side" in the coming quarter. One key factor is a shortage of advanced-node microprocessors, which Apple largely sources from Taiwan-based TSMC. Cook noted that the supply chain has limited flexibility to address the constraints. The warning overshadowed strong financial results, which were partly boosted by tariff refunds that increased Apple's gross margin by 2%, translating to roughly $1.1 billion, according to BBC calculations. Cook said Apple intends to reinvest those refunds into the U.S., aligning with a previous commitment to put $600 billion toward domestic manufacturing over four years. China remains the largest manufacturer of Apple's products. Cook also discussed the upcoming public relaunch of Siri, an AI assistant still in public beta, calling it part of "an enormous opportunity for Apple going forward in AI." He said negotiations with European Union authorities are ongoing to release the new Siri "to everyone, everywhere at the same time."