Apple Stock Drops as Company Warns of Supply Shortages Amid Strong Sales
Apple's stock took a hit on Friday after the company revealed it is struggling to meet demand for its iPhones and Macs. Despite exceeding expectations in terms of sales, Apple warned that supply shortages would worsen and impact future sales.
The tech giant reported revenue of $109 billion in its fiscal 2026 third quarter, a 16% year-over-year increase. iPhone sales surged by 22% to $54 billion, while Mac sales rose 29% to $10 billion. However, Apple's growth is decelerating, with management guiding for revenue to increase only 9-11% in the next quarter.
Chief Financial Officer Kevan Parekh warned that supply shortages would worsen due to booming demand for artificial intelligence infrastructure, which has driven up memory chip costs. This has forced Apple to raise prices and weigh on its profit margins.