After its iPhone 16 surprised the smartphone world by becoming the best-selling smartphone of 2025, Apple is back in the spotlight as it revealed an unusually strong financial first quarter, securing a 23% year-over-year increase in iPhone sales.
According to what Apple CEO Tim Cook reported, the company sold $85.27 billion worth of iPhones during this period, indicating a huge increase in demand for the device.
That said, Apple is currently running out of sufficient application processors (APs) built on TSMC’s 3nm process node.
Although demand for iPhone models is very high, Cook noted, the limited supply limits Apple’s hand in meeting it, PhoneArena reported.
The chips in question are A-Series application processors manufactured by TSMC, and Cook mentioned that Apple is hyperactively involved in improving its access to these APs. Apple higher up made no projections beyond March.
Apple’s chief financial officer, Kevan Parekh, told analysts that total revenue for the current quarter is expected to rise 13% to 16% year-over-year.
In addition to supply and demand issues, Cook highlighted another concern regarding memory chips, which are apparently in high demand due to the rise of AI data centers, leading to shortages and increased prices.
While admitting that Apple would also have to confront rising memory chip prices, Cook assured that the company is exploring various options to address the situation.
