Apple Stock Tumbles 9.3% on Weaker Revenue Forecast Amid Supply Constraints

Apple's stock plummeted by approximately 9.3% in Friday's trading session as of 10:19 a.m. ET, following a weaker-than-expected quarterly revenue forecast due to supply constraints.

The company expects its revenue to increase between 9% and 11% during the current quarter, falling short of Wall Street's projection of around 12%. This decline puts Apple's shares on track for their worst session since March 2020 and could result in a loss of roughly $500 billion in market value if sustained.

According to Chief Executive Tim Cook, the component shortages are significant and have limited Apple's options to mitigate their impact. The intensified demand from AI data centers has increased competition for chips and memory, while inventory buffers that previously shielded Apple are diminishing. Processor shortages are hindering the company's ability to meet iPhone and Mac computer demand.

Investors are also concerned about slower growth in Apple's services business, which has historically provided recurring revenue alongside hardware sales. At least four brokerages have reduced their price targets following the report, while three have raised theirs, with a median objective of approximately $330.