Apple’s revenue rose nearly 12% year over year to $114.48 billion in the three months through September. Profit also increased nearly 12%, reaching $30.71 billion. Both results exceeded Wall Street expectations, and the company set fiscal-year records for revenue and profit for the year that ended in September.
Chief financial officer Kevan Parekh said higher prices for memory chips, a key component in Apple devices, had hurt profits. The company also faced supply constraints in a manufacturing process used to produce chips for its products.
Apple’s cost concerns come amid a broader shortage of memory and storage chips. The source report said demand from companies building artificial intelligence data centers has tightened supplies of components used across the technology industry. Apple has not invested heavily in AI compared with other major technology companies, but it is still exposed to the effects of the shortage.
Other companies have also reported pressure from rising component costs. Intel said last week that higher prices were hurting its personal-computer chip business; its shares fell more than 29% the following day.
Sources: The New York Times Technology.