Apple Shares Plummet on Memory Cost Pressure Amid Record-Breaking Earnings

Apple's recent Q3 earnings report sent shares down around 6% despite beating almost every headline metric. The company posted a record third-quarter result, with revenue rising 16% year on year to $109.4 billion. Products revenue reached $78.7 billion, up 18% from the same period last year, while services segment grew 12% to $30.7 billion.

The main concern for AAPL investors is the memory cost pressure, which emerged as the central issue after the company's record-breaking Q3 results. Apple CFO Kevan Parekh stated that the installed base of active devices reached a new all-time high across all major product categories and geographic segments in the quarter.

The post-results selloff was driven by guidance. Management set Q4 revenue growth at 9%-11%, below the 12% analysts had modelled, and guided gross margin at 47%-48%, down from the 50.1% recorded in Q3. Cook attributed the expected benefit of approximately 1 percentage point from tariff refunds.