Apple Inc. (NASDAQ:AAPL) is reshaping its 2026 product roadmap around higher-margin premium devices as chip shortages squeeze supply, signaling that hardware constraints, not demand, will drive its near-term growth.
The company is restructuring its 2026 hardware lineup. According to a Nikkei Asia report on Friday, the company will prioritize the production and shipment of its three highest-end devices, including its first-ever foldable iPhone and two premium models with upgraded cameras for a flagship launch in the second half of 2026.
Consequently, Apple has delayed the standard iPhone 18 rollout until the first half of 2027.
Supply Chain Pressures Limit Output
During a Thursday earnings call, Apple executives confirmed that supply chain constraints are limiting their ability to meet the handset demand.
While CEO Tim Cook noted that surging memory prices had a “minimal impact” in the December quarter, he warned that the AI-driven memory shortage will have a bigger effect in the March quarter.
Finance chief Kevan Parekh told analysts that the company’s revenue growth forecast of 13% to 16% accounts for these supply limitations.
To navigate the crunch, Apple is exploring “a range of options” to address skyrocketing memory costs.
Cook explained that the primary bottleneck stems from the availability of advanced manufacturing nodes at Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM), where Apple is currently seeking 3-nanometer production, CNBC reported on Thursday.
Strong Results Despite Constraints
Despite these hurdles, Apple continues to move more of its supply chain to the U.S., sourcing 20 billion domestic chips in 2025 under a $600 billion investment plan.
On Thursday, Apple delivered a blockbuster first quarter, signaling continued confidence in demand, amid supply constraints. Apple reported fiscal first-quarter revenue of $143.76 billion, topping analyst estimates of $138.42 billion.
Earnings reached $2.84 per share, well above the $2.66 consensus. Revenue grew 16%, while earnings per share climbed 19%. iPhone sales led the quarter, jumping to $85.27 billion from $69.14 billion a year earlier.
AAPL Price Action: Apple shares were down 0.33% at $257.43 during premarket trading on Friday, according to Benzinga Pro data.
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