Apple Plunges 7% on Weak Forecast, Supply Chain Woes in Cook's Final Call
AAPL sits 53% above its 52-week low of $201.5.
Summary
Apple shares dropped 7% pre-market after the company issued a revenue growth forecast of 9-11% for the current quarter, missing the ~12% Wall Street estimate. CEO Tim Cook, on his final earnings call before transitioning to Executive Chairman in September, called component shortages 'very significant' and said the company's inventory buffer is fading. The supply chain strain, driven by AI data center demand, is limiting iPhone and Mac production despite strong demand. Services growth also softened, raising concerns about future monetization. This follows a series of challenges including China shipment declines, EU regulatory hurdles, and price hikes. The forecast miss and supply chain warning mark a material negative shift, with the stock set to erase over $360 billion in market value. The CEO transition adds uncertainty, though John Ternus is a known internal successor. Watch for the iPhone launch in September, where expected price increases could further test demand.
At the time of this announcement, AAPL was trading at $307.89 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.9T. The 52-week trading range was $201.50 to $344.57. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Reuters.