Apple Earnings Beat Revenue Estimates but Miss Guidance Amid Supply Chain Challenges
Apple reported fiscal third-quarter earnings with revenue beating estimates at $109.42 billion, driven by strong performance in iPhone, Mac, and wearables segments. However, the stock fell nearly 8% as weaker-than-expected guidance for current quarter growth—projected between 9% to 11%, below expectations of 12%—spooked investors. Analysts were divided on Apple's outlook: while some praised its strong free cash flow and product demand, others highlighted supply chain constraints affecting key components like memory chips. These issues are expected to impact iPhone sales and could shift supplier priorities toward AI-related products over Apple’s offerings in the near term. Barclays downgraded Apple with a price target of $245 due to inventory concerns and component shortages at advanced manufacturing nodes, while Baird maintained an outperform rating citing robust demand indicators. UBS remained neutral as it noted potential margin pressures ahead.
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