Apple posted record Q1 revenue of $143.8 billion and EPS of $2.84, beating estimates. Despite strong demand, CEO Tim Cook signaled potential headwinds for the iPhone 18, citing supply tightness and rising component costs.

The company is in "supply chase mode," according to Cook, as advanced chip shortages and soaring memory prices disrupt production. Micron and SanDisk are scaling fabs, but relief won't come soon. SanDisk’s stock surged 1,230% in six months amid record demand.

Analysts like Ming-Chi Kuo suggest Apple may absorb costs for now, but pricing decisions loom. With iPhone sales up 23% to $85.3 billion, Apple’s inelastic demand may allow price hikes. Investors are watching whether 2026 margins hold amid inflationary pressures.