Apple Exits $5 Trillion Market Cap Club After Earnings Report Amid Memory Cost Concerns
Despite reporting strong third-quarter earnings with revenue rising to $109.4 billion and iPhone sales up 22%, Apple's stock fell by nearly 7% due to disappointing guidance. The company projected slower-than-expected growth, citing foreign exchange headwinds and supply constraints—particularly related to memory chip costs—which are expected to continue beyond the September quarter. Apple had previously raised iPhone prices in response to rising memory chip expenses, but CEO Tim Cook warned that these price increases may not be enough to offset ongoing cost pressures. Analysts suggest this could limit Apple's profit growth and potentially slow its momentum toward a $5 trillion market cap. While the company is still growing revenue across all regions with strong gross margins of 50.1%, investors are now watching closely how it navigates these supply-side challenges.
Tickers: $AAPL
Topics: Apple Earnings Report Guidance Memory Prices Revenue Growth