Apple's Record Quarter Not Enough to Stem Losses

Apple's stock fell 7.4% to $308.91 on Friday despite beating Wall Street expectations in its June quarter results, which included a record revenue of $109.4 billion and iPhone sales of $54.3 billion.

The decline was largely due to the company's guidance for the September quarter, which predicted a 9-11% year-over-year growth rate, lower than the 16% achieved in the June quarter.

Apple attributed the slower growth to supply constraints and a sequential foreign exchange headwind of about two and a half percentage points. However, management emphasized that this is not a regular supply issue but rather a demand forecast miss, with iPhone and Mac sales exceeding expectations.

The main concern is the increasing cost of memory, which Apple paid more for in the June quarter than in previous quarters. The company expects to pay even more for memory in the September quarter and has already raised prices on iPad and Mac.