Apple Inc. (AAPL.US) impressive performance facing "cost clouds"! Cook warns: rising memory chip prices may drag down gross profit margins in the new quarter.

Despite Apple Inc.'s (AAPL.US) announcement of record-high quarterly revenue and better-than-expected performance outlook for the current quarter, the company also issued a warning, stating that rising component costs are squeezing profit margins. During an analyst conference call held on Thursday, Apple Inc. stated that revenue for the second quarter of the fiscal year 2026 ending in March is expected to grow by 13% to 16% year-over-year, surpassing Wall Street's previous forecast of 10%, indicating that Apple Inc. can maintain its growth momentum even after a revenue surge in the first quarter driven by iPhone sales. However, the shadow of continued price increases in storage chips cast a cloud over this impressive performance. Apple Inc. CEO Cook said that the impact of storage chip costs in the previous quarter was minimal, but the drag on gross profit margin in the current quarter will be more apparent. Data shows that Apple Inc.'s gross profit margin in the first quarter reached 48.2%, not only higher than the company's previous guidance but also exceeding analysts' expectations of 47.45%. Cook said, "We continue to see significant increases in storage chip pricing in the market." Additionally, Apple Inc. revealed that there have been issues in the supply chain of the 3-nanometer processor used in iPhones and the third generation AirPods Pro, and these supply chain issues are independent and unrelated. eMarketer analyst Jacob Bourne said, "Consumer fatigue towards inflation, coupled with ongoing shortages in storage chip supply, may put pressure on Apple Inc.'s hardware business gross margins in the coming quarters, making the continued growth of its high-margin service business increasingly critical." These concerns have put pressure on Apple Inc.'s stock price. After the earnings announcement, Apple Inc.'s stock price fluctuated in after-hours trading, rising nearly 3.5% at one point, but by the time of writing, the increase was less than 1%. So far this year, Apple Inc.'s stock price has fallen by 5%, while the S&P 500 index has risen by 1.8% during the same period. During the holiday shopping season, benefiting from strong demand for the iPhone 17, growth in the service business, and the recovery of the Chinese market, Apple Inc.'s revenue far exceeded Wall Street expectations. As of December 27, quarterly sales surged by 16% to $143.8 billion, higher than the average analyst forecast of $138.4 billion and also exceeding Apple Inc.'s own target of 10% to 12% growth. In the earnings statement, Cook said, "iPhone demand is exceptionally strong, achieving the best quarterly performance ever, with record sales in all regions." This result confirms the success of Apple Inc.'s latest iPhone series, which accounts for about half of the company's total revenue, with high-end models being particularly popular, further driving the company's sales and profit growth. However, there are also weak spots in this quarter, including the Mac and wearables business. The company's AI development plan is also facing market concerns, as the plan has undergone a comprehensive adjustment this year after recent setbacks. Additionally, Apple Inc. is dealing with tariff issues, stating that during the holiday season, tariffs have had a negative impact of $1.4 billion on its performance. The company, headquartered in Cupertino, California, has surpassed Samsung Electronics (SSNLF.US) over the past few months, reclaiming the title of the world's largest smartphone seller. But eMarketer's Bourne remains cautious, stating, "However, the uncertainty of maintaining this dominant position may be greater than ever, and the key lies in whether the company can make the right decisions in pricing strategies and the development of next-generation devices (especially wearables and the highly anticipated foldable screen iPhone)."