Apple reported a 23% increase in iPhone sales and a 16% rise in services revenue in the 2026 fiscal first quarter. CEO Tim Cook warned of rising memory costs, impacting margins. Gross margin was 76.5%. Supply constraints remain a challenge.

AI development at Apple faces supply constraints and rising memory costs. Gross margin was 48.2% in Q1, driven by services. Cook expects margin pressure in the near term. Apple stock may be impacted by supply issues.

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