Apple Stock Slumps on Supply Shortages and Soaring Component Costs

Apple's stock fell on Friday after the company warned of supply shortages and soaring component costs that were delaying sales and denting its profit margins. Despite exceeding Apple's expectations, iPhone and Mac sales are causing a bottleneck in the supply chain.

The company's revenue grew 16% year over year to $109 billion in its fiscal 2026 third quarter, with iPhone sales surging 22% to $54 billion. However, management guided for revenue to increase only 9% to 11% year over year in the next quarter, falling short of Wall Street's projection.

Chief Financial Officer Kevan Parekh warned that supply shortages would likely worsen and impact iPhone, Mac, and iPad sales, citing booming demand for artificial intelligence infrastructure as a major driver of component costs. CEO Tim Cook attributed the issue to higher-than-expected sales of iPhones and Macs, rather than a regular supply chain problem.