Tim Cook

Apple said the company faced supply chain constraints for its iPhone and Mac businesses.

Unprecedented investment in artificial intelligence has pushed demand for memory chips through the roof.

That's caused memory chip prices to soar.

And Cook said he doesn't see the supply crunch easing.

He expects significantly higher memory costs, which will impact Apple's business.

Still, executives projected confidence.

John Ternes, who takes over from Cook as CEO in September, said the company has an exciting roadmap ahead.

I'll do it until the voice in my head says, it's time.

And then I'll go and focus on what the next chapter looks like.

My life has been wrapped up in this company, as you mentioned, since 1998.

This is a long time.

It's the overwhelming majority of my adult life.

And so it's tough to envision life without Apple.

Tim Cook became CEO 15 years ago with big shoes to fill.

He succeeded Apple's visionary founder, Steve Jobs.

Cook had been at Apple for years.

He's best known for overhauling Apple's manufacturing operations and embedding its supply chain deeply in China.

Now, Cook will hand the reins to John Ternes, a senior vice president at the company.

Ternes has led hardware engineering teams for almost all of Apple's best-known products, including the iPhone and the Mac computer.

The leadership change takes place at the start of September, with Cook leaving Ternus some significant challenges, including on artificial intelligence, where Apple is playing catch-up.