AAPL shares dropped 7.4% over two days despite 16.4% YoY net sales growth and record iPhone demand.
Apple’s market capitalization fell by $426 billion after a 7.4% share decline over two days, despite reporting its strongest third-quarter results in five years. Net sales rose 16.4% year over year, driven by a 21.7% increase in iPhone sales and an 18.1% rise in overall product revenue.
The quarter marked the first since fiscal 2021 where product sales outpaced services growth. Services, including iCloud and Apple Music, had previously been the primary growth driver, expanding at double-digit rates. However, the recent surge in product demand signals a potential new upgrade cycle for the company.
Investors appeared unconvinced by the results, focusing on broader market concerns or pricing adjustments, including recent hikes on Mac, iPad, and other devices due to rising memory chip costs.