Apple Slumps on Weak Revenue Outlook Amid Soaring Memory Costs
Apple's stock took a hit on Friday after the tech giant issued a disappointing revenue outlook. The company expects 9% to 11% growth in the current quarter, falling short of analysts' estimates of 11.8%. This comes despite topping expectations for its fiscal third-quarter earnings and revenue.
The decline is attributed to supply constraints caused by soaring memory costs, which have forced Apple to hike prices on some products. Jefferies analysts also suggested that consumers may have brought forward plans to buy new devices ahead of price increases, potentially impacting sales in the next couple quarters.
Investors' attention is now turning to leadership changes and the anticipated launch of a foldable iPhone in September. CEO Tim Cook will hand over the top job to John Ternus at that time, and Apple is expected to unveil its newest iPhone lineup, which may include the company's first foldable device.
Despite Friday's slump, Apple shares are still up about 12% since the start of the year after hitting a record high earlier in the week.