Apple Stock Plunges on Warning of '100-Year Flood' Memory Chip Shortage

Apple's stock price plummeted by 7.4% to $308.91 on July 31 after CEO Tim Cook issued a warning about a severe memory chip shortage that is affecting the company's supply chain.

Cook described the situation as a '100-year flood' in memory pricing, which has led Apple to raise prices for its Mac computers and iPad tablets in June to account for elevated memory chip expenses.

The company reported record quarterly revenue of $109.4 billion, up 16% year over year, but issued weak forward guidance citing severe supply constraints driven by the global memory chip shortage.

Apple's net income came in at $2.02 per share, exceeding analyst expectations of $1.89 per share, and iPhone sales surged 22% to $54.3 billion while Mac revenue jumped 29% to $10.4 billion, both setting June-quarter records.