Apple Posts Record June Quarter Under Cook, Stock Slides on Supply Concerns

Apple's latest June quarter was its best ever under CEO Tim Cook, who will step down on September 1. The company posted a 16% year-over-year revenue increase to $109.4 billion, with earnings per share rising 29% to $2.02 and net income climbing 27% to $29.8 billion.

Cook's last quarter as CEO saw strong growth in iPhone and Mac sales, with iPhone revenue jumping 22% to $54.3 billion and Mac revenue growing 29%. The company's gross margin expanded to 50.1%, up from 46.5% a year earlier.

The company warned of supply constraints that will weigh on iPhone, iPad, and Mac sales in the September quarter, which may have contributed to a post-earnings stock slide of as much as 8%. The new CEO, John Ternus, inherits a company with a strong growth trajectory but also faces challenges from rising memory costs and supply chain issues.

The market's concerns about Apple's valuation, which has risen to around 40 times earnings, may have contributed to the sell-off. However, some analysts argue that the stock is due for a breather given its recent run-up.