Apple Plunges 7% on Weak Forecast, Supply Chain Woes in Cook's Final Call
AAPL sits 51% above its 52-week low of $201.5.
Summary
Apple shares are down 7% today after the company issued a disappointing forecast and warned of worsening component shortages during Tim Cook's final earnings call as CEO. The selloff stands out against a broader tech rebound led by Amazon's 13% surge on strong cloud sales, and the slump is dragging on the tech sector. This follows a 6% drop in late June and adds to a string of negative headlines, including a 19% iPhone shipment decline in China and EU regulatory headwinds. The weak outlook and supply chain issues directly threaten the premium pricing strategy Apple recently implemented with 15-25% price hikes across Macs and iPads. With Cook departing, the leadership transition adds uncertainty at a time when the company is betting heavily on its new AI suite to reignite growth.
At the time of this announcement, AAPL was trading at $303.63 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.5T. 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: Dow Jones Newswires.