Apple's Strong Earnings Report Falls Short of Expectations

Apple's recent earnings report showed impressive growth, but the market reacted negatively. The tech giant posted $109 billion in revenue for Q3, a 16% increase year over year, and EPS of $2.02.

The stock fell 6.3% in response, despite the strong headline numbers. However, analysts point out that the one-time tariff boost added $0.11 to EPS and won't repeat, while Services growth missed expectations at $30.739 billion.

A key concern is the supply chain leverage, with CXMT refusing Apple's price-cut demand due to a global DRAM crunch. This gives Huawei and Xiaomi rare leverage over Apple, pushing input costs higher.