Apple Stock Plummets 7% Amid Production Capacity Concerns

Apple's stock price fell by approximately 7% on Friday to around $309 per share due to concerns about limited production capacity and rising component costs.

The company guided September-quarter revenue growth to 9-11%, below Wall Street's expectation of 12%. Apple also warned that supply constraints would increase across iPhone, Mac, and iPad. Management attributed the main production bottleneck to limited availability of advanced chipmaking capacity for manufacturing Apple-designed processors.

On its recent earnings call, Apple reported a record $109.4 billion in revenue for the June quarter, up 16% year over year. However, the company's guidance and warning on supply constraints overshadowed these positive results.