Apple Exits $5 Trillion Market Cap Club After Earnings Report Amid Memory Cost Concerns
Despite a strong third-quarter earnings report with revenue rising to $109.4 billion and iPhone sales up 22%, Apple (NASDAQ: AAPL) saw its stock fall by 7.4% following disappointing guidance. The company cited foreign-exchange headwinds and supply constraints, particularly related to surging memory chip costs, as key challenges for the upcoming quarter. Apple's gross margin reached 50.1%, partly due to tariff refunds, but it expects this to drop slightly in Q3 amid ongoing pressure from rising memory prices. CEO Tim Cook warned that these price increases could continue beyond September and negatively impact Apple’s margins. Analysts note that while the memory shortage is unlikely to last forever, its current effect may limit profit growth for at least a year or two. The stock had recently surged past a $5 trillion valuation but has now fallen below it following this report.
Topics: Apple Earnings Report Memory Costs Stock Performance