Apple's Supply Chain Struggles Hit Revenue Growth Predictions

Apple's latest forecast has disappointed investors as the company struggles to meet demand due to supply chain constraints. The iPhone maker expects revenue growth of 9-11% in the current quarter, below Wall Street's target of 12%. Chief Executive Tim Cook attributed this to an industry-wide shortage of advanced chipmaking technology needed for Apple silicon chips.

Cook stated that the main supply constraint was particularly true for the Mac lineup, whose sales grew 29% despite price increases. The CEO added that Apple is 'evaluating all options' for alternative suppliers of memory chips.

Despite beating market expectations in its fiscal third quarter, Apple's shares fell 5.5% in after-hours trade. iPhone revenue growth was predicted at a mid-teens rate, lower than Wall Street's target of 17.6%. Gross profit margins were also below estimates due to increased memory costs.