Apple Faces Significant Supply Shortages

Post Japanese quake, Apple is having a difficult time procuring NAND and DRAM memory chips, as well as glass for its iPad 2.

Toshiba, #2 global supplier of NAND flash, said their factories in Japan would be closed for at least 1 month. Since then, spot prices for both NAND and DRAM have soared.

Because of these difficult headwinds, there is a distinct chance Apple’s margins will be hampered in Q2.