Apple's Memory Headache Slams Stock Despite Strong Earnings

Apple's (AAPL) third-quarter earnings report revealed a strong performance, with revenue increasing 16% to $109.4 billion and beating analyst estimates. The tech giant saw iPhone sales jump 22% to $54.3 billion, while Mac sales rose 29%. Apple also reported double-digit growth in all five of its regions.

The company's gross margin reached 50.1%, including a two-percentage-point benefit from tariff refunds. However, the stock still finished down 7.4% as Apple issued disappointing guidance, citing foreign-exchange headwinds and supply constraints related to memory costs.

CEO Tim Cook stated that memory prices were expected to rise beyond September, potentially driving an increasing impact on Apple's business. The company expects gross margin of 47%-48% for the September quarter, matching last year's figure.