Apple's Market Cap Drops Below $5 Trillion Amid Disappointing Guidance

Apple's market capitalization has dropped below $5 trillion after the company reported strong Q3 earnings but issued disappointing guidance.

The tech giant delivered a revenue jump of 16% to $109.4 billion, exceeding consensus estimates at $109 billion, with iPhone sales up 22% and Mac sales increasing by 29%. Gross margin reached 50.1%, including a two-percentage-point benefit from tariff refunds.

However, Apple's stock fell 7.4% after the company cited foreign-exchange headwinds and rising memory chip costs as major factors for its guidance of 9%-11% revenue growth in the next quarter.

CEO Tim Cook stated that memory prices were expected to rise in the September quarter but could continue beyond, potentially driving a significant impact on Apple's business.