Apple Tumbles $400 Billion in Single Trading Day Amid Component Shortages
Apple's stock price plummeted nearly 10% on Friday following a disappointing outlook that highlighted the company's struggles to secure enough components amid an AI-driven data center boom straining global supply chains.
The decline represents the stock's worst single-day performance since March 2020 and erases some $400 billion from Apple's market capitalization, handing the title of world's most valuable company back to Nvidia just days after Apple reclaimed it.
Outgoing CEO Tim Cook described the shortages as 'very significant' during his final earnings call before transitioning to executive chairman in September. Cook said Apple had limited options to address the constraints.
Ben Bajarin, CEO of tech consultant Creative Strategies, noted that even at Apple's scale, saying they are out of all supply chain flexibility is 'really bad for everyone.'