Apple warns AI-driven memory chip shortages will squeeze Q2 2026 margins despite strong sales.

Apple warned that rising memory chip prices, driven by AI demand, will pressure its gross margins in Q2 2026, projecting a range of 48% to 49%. The company faces supply constraints due to limited access to advanced semiconductor nodes and memory components, particularly from TSMC, as AI data centers prioritize high-bandwidth memory. Despite strong iPhone demand and record revenue, Apple entered the year with low inventory and is now navigating tighter supply chain flexibility, shifting to quarterly procurement. Memory costs are surging globally, with DRAM and NAND prices rising sharply, affecting consumer electronics across the industry. While Apple has secured short-term supply, long-term cost pressures and reduced flexibility may impact future pricing and production.