Apple’s shares fell sharply as services revenue missed estimates and memory supply constraints threaten margins and guidance.
Apple (NASDAQ: AAPL) declined as much as 10% after reporting fiscal third-quarter results, despite beating earnings per share estimates. Services revenue reached $30.7 billion, falling short of analyst expectations, while memory supply constraints drove concerns over rising costs and margin pressures.
Analysts had projected 12% revenue growth for the upcoming quarter, but Apple guided between 9% and 11%. The company cited DRAM and NAND memory shortages, which are increasing component prices across the tech sector, as a key challenge. Demand for Apple’s products remains strong, though cost absorption or price hikes could weigh on consumer spending.
The stock’s decline reflects broader market concerns over supply chain disruptions and their impact on profitability. Apple’s premium valuation persists despite the sell-off, with long-term investors viewing the dip as industry-wide rather than company-specific.