2 months ago
Apple Shares Drop 6% Amid Supply Chain Concerns
Apple made a lot of money in the last three months, more than people expected.
But when the company said it might not grow as fast next quarter, its stock price fell.
The reason is that Apple can’t get enough computer chips because many companies need them for new AI products.
The CEO, Tim Cook, said this is like a big flood that is hard to stop.
Even though Apple sold many iPhones and Macs, the shortage of parts makes it hard to keep making more money quickly.
Apple beat Q3 revenue and earnings estimates, reporting $109.42B revenue and $29.79B earnings.
Shares fell 6.3% in after‑hours trading after the company cut September‑quarter sales guidance to 9‑11% growth.
CEO Tim Cook cited a memory‑chip shortage driven by AI demand as a key reason for slower growth.
CFO Kevan Parekh warned that currency fluctuations and supply constraints would dampen services growth.
Apple plans new Mac and iPad refreshes, but faces limited chip supply from TSMC and rising memory costs.
- Who
- Apple Inc. and its executives
- What
- Q3 earnings beat but shares fell after lower September‑quarter guidance
- Where
- Apple’s earnings call and U.S. stock market
- When
- July 30, 2024
- Why
- Supply chain constraints, memory‑chip shortage, and currency fluctuations
Key facts
- Q3 Revenue
- $109.42 billion
- Q3 EPS
- $2.02 per share
- September Quarter Guidance
- 9%–11% growth
- Share Price Drop
- 6.3% after hours
- CEO
- Tim Cook
Quotes
Kevan Parekh
Chief Financial Officer of Apple Inc.
“It’s not a regular supply issue. It’s a demand forecast issue, to be candid. The iPhone and the Mac are both doing remarkably better than we thought they would do…We’ve got a quarter that we’re going to be scrambling on the supply side, essentially.”
financialexpress.com
“The memory shortage issue is like a 100-year flood, and the chip shortage was fueled by higher-than-expected demand for the iPhone and the iMac.”
CNBC TV 18
Sources
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