Apple Stock Hits Worst Single-Day Decline in Over a Year Amid Supply Chain Headwinds
Apple's stock is headed for its worst single-day decline in over a year after the company's fourth-quarter revenue guidance disappointed Wall Street. Morningstar analysts say strong demand for the iPhone 17 and MacBook Neo will be overshadowed by supply constraints and rising memory costs.
The firm expects tight global chip supply, driven by artificial intelligence demand, to create a roughly 3% growth headwind in the September quarter and fiscal 2027. Memory inflation is also expected to continue squeezing profitability, with a forecasted 250-basis-point sequential decline in product gross margin in Q4.
Apple has begun raising prices to offset higher component costs, but Morningstar says those increases are unlikely to fully eliminate the pressure in the near term. The company's CEO, Tim Cook, said Apple is seeing less flexibility in its supply chain than usual and expects the impact of these constraints to 'increase significantly' in the near-term.
Analysts at Barclays also lowered their price target on Apple shares to $245 from $253 and reiterated their 'Underweight' rating. Goldman Sachs trimmed its price target to $360 from $370, but maintained their 'Buy' rating.