Apple Stock Price Drops Amid Margin Concerns

Apple's stock price took a sharp hit, falling by about 7% to $308.91 after its latest quarterly results. Despite strong revenue and earnings per share figures, investors are concerned about the company's margin profile.

The tech giant reported record June quarter numbers, with revenue reaching $109.4 billion and earnings per share coming in at $2.03. However, a closer look at the numbers reveals that 2 percentage points of the gross margin came from tariff refunds.

Management guided for a lower gross margin of 47% to 48% in the next quarter, citing elevated DRAM and NAND memory prices and advanced node shortages as major concerns.