Apple Stock Tumbles as Memory Costs Bite into Profits

Apple's strong third-quarter earnings report failed to impress investors as its stock fell 7.4% after the company issued disappointing guidance, citing foreign-exchange headwinds and supply constraints related to memory costs.

The tech giant reported revenue of $109.4 billion, beating consensus estimates at $109 billion, with iPhone sales jumping 22% to $54.3 billion and Mac up 29%. However, gross margin reached 50.1%, including a two-percentage-point benefit from tariff refunds, which was lower than expected.

Apple CEO Tim Cook warned that memory prices were expected to rise in the September quarter, with some ways to offset costs, but would continue to increase beyond this period, potentially impacting profits.