Apple's Record Sales Clouded by Rising Costs and Supply Chain Fears

• Apple reported record quarterly sales and an upbeat forecast, exceeding Wall Street expectations for the current period.
• Despite strong iPhone 17 demand and growth in services, rising component costs, particularly memory prices, threaten to squeeze gross margins.
• The company faces supply chain constraints for iPhone's 3-nanometer processor and AirPods Pro 3 components.
• Apple regained its position as the No. 1 smartphone seller globally, surpassing Samsung Electronics Co.
• Weak spots included Mac and wearables businesses, and concerns persist regarding Apple's artificial intelligence strategy.

Why It Matters: Apple's strong sales are overshadowed by increasing costs and supply chain issues impacting future profitability.