Apple's $500 Billion Market Value Plunge: Supply Chain Shortages Bite

Apple's market value plummeted nearly $500 billion on Friday after the company released a weak forecast. The drop was triggered by Apple's struggle to obtain enough parts due to global supply chain disruptions caused by the AI data center boom.

The forecast showed that Apple's revenue growth would be between 9% and 11% for the current quarter, falling short of Wall Street's estimate of about 12%. This disappointing outlook led to a nearly 10% decline in Apple shares, making it the company's worst single-day performance since the pandemic selloff in March 2020.

Tim Cook, Apple's outgoing CEO, described the shortages as 'very significant' and said that the company had few options left to address them. This development has raised concerns about the entire industry's supply chain resilience.

Ben Bajarin, CEO of Creative Strategies, commented that even Apple struggling with supply chain solutions is a negative sign for the whole industry.