Overview
- Investors sold off shares on Friday, sending Apple down about 7–10% and wiping roughly $500 billion from its market value after the company’s guidance and supply warning.
- Apple reported strong third‑quarter results with revenue up about 16% to roughly $109 billion and iPhone and Mac sales rising sharply, but the positive quarter did not prevent the decline in outlook.
- For the September quarter Apple guided to 9%–11% revenue growth, below Wall Street expectations, and CEO Tim Cook said the company expects to be “scrambling on the supply side.”
- Management identified rising memory prices and limited chip capacity as primary headwinds, and analysts warned that competition for advanced chips to support AI workloads could keep component costs high into 2027.
- Tariff refunds gave a near‑term two‑percentage‑point boost to gross margin that Apple plans to reinvest in U.S. operations while the company cautioned its inventory levers used to soften cost increases will not last.