Apple shares fall nearly 10% as supply chain issues impact forecast
Apple's stock dropped almost 10%, marking its worst single-day decline since the pandemic, after a weaker-than-expected revenue forecast due to ongoing global supply chain disruptions. CEO Tim Cook highlighted significant shortages of components and limited options for addressing them ahead of his transition in September. The AI-driven demand for advanced chips has strained suppliers, affecting both PC and smartphone markets. Investors were also concerned by slower growth in Apple's services segment despite strong iPhone sales. Analysts noted that rising memory costs have been partially offset by inventory buffers, but these are now depleting. Some analysts remain cautious about the impact of potential price hikes on new iPhones later this year.
Topics: Apple Earnings Report Stock Performance Supply Chain Issues