Apple Stock Plummets 7.4% on Slowing Sales Growth and Rising Costs

Apple's stock took a hit yesterday after the tech giant reported slower sales growth and rising costs. Despite having its best third quarter in five years, investors are getting uneasy about Apple's future prospects.

The company's shares plummeted 7.4%, wiping out approximately $426 billion in value. This drop comes despite a strong third-quarter performance, with sales increasing by 16.4% and iPhone revenue rising nearly 22%. However, this growth may have been partly driven by price hikes on Macs and iPads, which might have encouraged customers to buy early.

Now, supply chain issues and expensive memory chips are adding pressure, making it challenging for Apple to maintain its momentum. CEO Tim Cook indicated that the company could face difficulties due to rising costs, especially if further price increases deter buyers.