Apple reported its best March quarter ever on Thursday with revenue of $111.2 billion and double-digit growth across every geographic segment, driven by record iPhone revenue from strong demand for the iPhone 17 lineup. Outgoing CEO Tim Cook delivered the strong results alongside a clear warning about what comes next: the company expects significantly higher memory costs in June and beyond that may drive an increasing impact on the business. Apple spent more on memory chips in March than in previous quarters but was able to offset some of that cost by selling stockpiled inventory, a buffer that will not last indefinitely as the underlying supply shortage continues.

The memory situation Cook is referring to is the AI-driven chip shortage that has been dubbed RAMageddon, where the explosive growth of AI data centers consuming massive quantities of high-speed memory has tightened supply and driven up prices across consumer hardware markets. RAM costs for iPhone production have reportedly quadrupled, a figure that puts incoming CEO John Ternus, who takes over on September 1, in a challenging position from his first day in the role. Cook, who will transition to executive chairman, acknowledged there is less flexibility in the supply chain at the moment for sourcing additional parts. One likely consequence is pressure toward higher iPhone prices, though Apple has not officially announced any changes. Cook's 15 years of supply chain mastery will be available to Ternus as he navigates what could be the most significant hardware cost challenge Apple has faced in years.