Apple's Stock Price Drops Despite Strong Earnings Report

Apple's third-quarter earnings report showed a strong revenue growth of 16.36%, reaching $109.417 billion, but its stock price dropped by nearly 8% to $312.41.

The company's gross margin received a one-time tariff boost worth $0.11 per share, which won't repeat in the future, while Services missed its consensus target of $31.2 billion with a growth rate of 12.1% year over year.

Additionally, Apple's supplier leverage is deteriorating due to a global DRAM and NAND crunch, giving Huawei and Xiaomi rare supply chain leverage over Apple.