AAPL Stock Plummets Amid Memory Shortage Woes

Apple's (AAPL) stock price plummeted by 8% on Friday morning following the company's fiscal Q3 2026 earnings report. Despite breaking multiple records, including a 16% year-over-year revenue increase to $109.4 billion and a record-high iPhone revenue with a 22% spike, investors were disappointed by the lower-than-expected Q4 revenue growth guidance of 9 to 11%. This fell short of the consensus 12.1% target.

The global memory shortage is being felt by Apple as it struggles to meet demand for its devices. The company has had to raise prices on Mac and iPad products due to rising memory costs, which Tim Cook likened to a '100-year flood' in memory pricing. Gross margins are expected to drop to 47-48% next quarter from the current 50.1%. Furthermore, Apple's semiconductor supply chain partner TSMC is unable to keep pace with demand for the iPhone 17 and MacBook Neo.

Cook acknowledged that Apple would be 'scrambling' on the supply side in the coming quarter. Additionally, this earnings call marked a significant moment as it was Tim Cook's final time speaking as CEO before passing the torch to John Ternus on September 1.