apple stock price tumbled 7% on Friday after Apple issued a weaker-than-expected revenue forecast for the current quarter, despite reporting record-breaking third-quarter results. The iPhone maker’s shares sank even though the company beat analyst expectations on both top and bottom lines, driven by strong iPhone sales. Investors reacted negatively to CEO Tim Cook’s warning that a global memory shortage is driving up costs and will have an “increasing impact” on the business. The apple stock price pullback comes after a strong year-to-date run, with shares up roughly 13% before the earnings report.
Apple shares tumbled 7% on Friday after the iPhone maker issued a weaker-than-expected revenue forecast for the current quarter, despite reporting record-breaking third-quarter results. CEO Tim Cook warned investors that a global memory shortage is driving up costs and will have an “increasing impact” on the company’s business in the months ahead.reuters+2
Record Quarter, But Guidance Disappoints
Apple reported fiscal third-quarter revenue of $109.4 billion, up 16% from a year earlier and beating analyst estimates of $108.8 billion. Earnings per share came in at $2.02, ahead of the $1.89 expected by Wall Street.reuters+3
iPhone sales were the standout performer, jumping 22% year over year to $54.3 billion—a new record for the June quarter. Mac revenue also surged 29%, while iPad sales grew modestly.reuters+3
However, two key areas fell short of expectations. Services revenue, which includes the App Store, iCloud, Apple Music, and subscriptions, totaled $30.7 billion, missing analyst estimates of about $31.3 billion. Greater China revenue came in at $18.8 billion, below the $19.5 billion forecast.reuters+2
Weak Fourth-Quarter Outlook
The bigger concern for investors was Apple’s guidance for the fourth quarter. The company expects revenue growth of 9% to 11%, compared with Wall Street’s consensus estimate of about 12.1%.reuters+1
Cook attributed the softer outlook to ongoing supply chain constraints and rising component costs, particularly for memory and storage. He said Apple has paid more for memory in each of the past three quarters and expects costs to rise again in the September quarter.finance.yahoo
“If you look beyond September, we see the market pricing for memory continuing to increase, which could drive an increasing impact on our business, and we’re continuing to evaluate this,” Cook said on the earnings call.finance.yahoo
Memory Costs Force Price Hikes
The global AI infrastructure build-out has created a “100-year flood” in memory pricing, according to Cook, who said he has never seen anything like it in his more than 40 years in the consumer electronics industry.finance.yahoo
In response, Apple has already raised prices on its Macs and iPads. The iPhone has been spared for now, but analysts widely expect Apple to boost prices on its next-generation iPhones when it unveils the lineup at its annual September showcase.finance.yahoo
The memory shortage is affecting not only costs but also availability. Cook warned that supply constraints will impact iPhone, Mac, and iPad sales in the September quarter.finance.yahoo
Stock Pullback After Strong Run
Apple shares had been trading near record highs before the earnings report, up roughly 13% year to date. The stock has outperformed many of its “Magnificent Seven” peers in 2026, partly due to its more restrained approach to AI capital expenditures compared with rivals like Amazon, Microsoft, and Alphabet.reuters
Still, the company is not immune to the broader AI-driven supply chain pressures. The memory and storage shortage is a direct result of the massive global investment in AI data centers and infrastructure, which has tightened supply and pushed prices higher across the tech industry.finance.yahoo
What Investors Are Watching
Despite the after-hours drop, Apple’s fundamentals remain strong. The company posted net profit of $29.8 billion for the quarter, up from $23.4 billion a year earlier. Services revenue, while slightly below estimates, still hit a June-quarter record and grew 12% year over year.finance.yahoo+3
Investors are now focused on whether Apple can navigate the memory shortage without significantly damaging demand for its products. The company’s ability to pass higher costs onto consumers—through price increases on Macs, iPads, and potentially iPhones—will be a key test of its brand strength and pricing power.finance.yahoo
Cook’s comments suggest the headwinds may persist beyond the current quarter. “We see the market pricing for memory continuing to increase,” he said, signaling that the pressure on margins and supply could extend into 2027.finance.yahoo
For now, the market is reacting to the near-term uncertainty. But with a record June quarter in the books and strong iPhone demand, Apple’s long-term outlook remains intact—even as it contends with one of the toughest supply environments in decades.