Apple Q3 Revenue Hits $109.4B, But Supply Shortages and Memory Costs Slam Stock
AAPL sits 53% above its 52-week low of $201.5 on elevated volume (2.3× avg).
Summary
Apple reported Q3 revenue of $109.4B, up 16% YoY, with iPhone sales surging 22% to $54.25B and Services reaching $30.74B. Gross margin came in at ~50.1%, but the company warned that AI-driven memory cost increases and chipmaking capacity shortages will constrain supply and slow growth. Q4 revenue guidance of +9–11% fell short of expectations, triggering the stock's biggest one-day drop in over a year. R&D spending jumped 32% YoY as Apple pours cash into AI infrastructure, adding to margin pressure. This follows a series of positive AI announcements and price hikes, but the supply chain warnings and cautious guidance overshadow the strong top-line beat. TD Cowen raised its price target to $400, but near-term targets were cut broadly. The K-12 MacBook Neo rollouts provide a bright spot, but the immediate focus is on whether Apple can manage component costs and capacity constraints without further eroding margins.
At the time of this announcement, AAPL was trading at $307.36 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: Wiseek News.