Apple Shares Drop Amid Supply Chain Woes Despite Strong Q3 Earnings
On August 1, 2026, Apple's stock fell after the company warned of supply shortages and rising component costs affecting sales and profit margins. Although revenue for its fiscal third quarter reached $109 billion with a 16% year-over-year increase driven by strong iPhone and Mac sales, investors were concerned about management’s conservative growth outlook. Apple guided for slower-than-expected revenue growth of 9%-11%, below the projected 12%. CFO Kevan Parekh attributed supply issues to increased demand outpacing forecasts. CEO Tim Cook noted that shortages stemmed from unexpectedly high iPhone and Mac sales, not a regular supply problem. Despite this being described as a 'good problem,' it raised concerns about near-term performance. The Motley Fool analysts did not recommend Apple for investment at the time, highlighting other stocks with potentially higher returns.