Apple Stock Drops Amid Supply Chain Woes and Rising Component Costs
Shares of Apple (AAPL) fell by nearly 7% on Friday after the company warned about supply chain disruptions and rising component costs, particularly for memory chips driven by demand in AI infrastructure. These issues are delaying product sales and squeezing profit margins despite strong quarterly performance. Apple reported a 16% year-over-year revenue increase to $109 billion during its fiscal third quarter, fueled largely by robust iPhone and Mac sales. However, the company's guidance for future growth—projecting an increase of just 9% to 11% in the next quarter—fell short of Wall Street expectations. Chief Financial Officer Kevan Parekh highlighted worsening supply shortages that could impact multiple product lines. CEO Tim Cook attributed these issues primarily to unexpectedly high demand rather than a traditional supply problem, indicating Apple is working on solutions.
Tickers: $AAPL
Topics: Apple component costs iPhone sales Mac sales supply chain issues