Apple Faces Fourth-Quarter Supply Constraints Due to Demand Forecasting Issues
Despite posting a record-breaking fiscal third quarter, Apple Inc. (AAPL) is facing supply bottlenecks in the fourth quarter due to an underestimation of consumer demand for its products like the iPhone and Mac. CEO Tim Cook acknowledged this as a 'demand forecast issue,' which has led to weaker-than-expected revenue guidance and a sharp drop in after-hours trading. Apple reported Q3 revenue of $109.42 billion, up 16% year-over-year, driven by strong sales from the A19-powered iPhone 17 lineup and new Macs. However, these successes have created supply chain challenges as Apple struggles to meet demand in a constrained semiconductor market. The company now expects Q4 revenue between $111.69 billion and $113.74 billion—below Wall Street's estimate—and faces additional macroeconomic pressures like foreign exchange headwinds and rising memory costs, which CFO Kevan Parekh warned will impact margins.
Tickers: $AAPL
Topics: demand forecasting revenue guidance supply chain constraints