Apple Stock Drops Amid Weak Revenue Forecast Due to Memory Shortage Concerns
Apple (AAPL) shares fell by 7% on Friday following a weaker-than-expected revenue forecast, despite strong iPhone sales and better-than-anticipated earnings. The company reported $109.4 billion in revenue for the third quarter of fiscal year 2026, with iPhone revenue hitting a record high due to increased demand. However, Services segment performance fell short at $30.7 billion versus an expected $31.3 billion, and Greater China sales also missed estimates. Apple's fourth-quarter guidance projected growth between 9% and 11%, below the consensus estimate of around 12.1%. CEO Tim Cook highlighted rising memory costs due to global AI infrastructure expansion as a growing concern for Apple’s profitability. The company has already raised prices on Macs and iPads, with potential iPhone price hikes expected in September. The stock had been performing well year-to-date but retreated from near-record levels amid broader market volatility among tech stocks.
Tickers: $AAPL
Topics: AI Infrastructure Costs Apple Memory Shortage Stock Price Drop