Apple shares plunge as component shortages curb growth outlook
Apple reported record fiscal third‑quarter 2026 results, posting revenue of $109.4 billion, up 16% year‑on‑year, with iPhone sales of $54.2 billion, Mac sales of $10.3 billion and services revenue of $30.74 billion. Net income rose to about $29.8 billion.
Despite the strong numbers, the company warned that advanced memory‑chip shortages and rising component costs are limiting production capacity. CEO Tim Cook, in his final earnings call before stepping down on 1 September, guided revenue growth of only 9%–11% for the September quarter, citing the “hundred‑year flood” of memory‑price inflation.
The cautious outlook sent Apple shares down roughly 5%–10% in after‑hours trading, the steepest single‑day drop in 16 months, erasing close to $500 billion of market value. Analysts reiterated mixed ratings, with price targets ranging from $250 to $400. The stock‑price decline reflects investor concern over supply‑chain constraints and the broader AI‑driven chip demand that is straining the industry.
Entities: Apple Inc. · Goldman Sachs · John Ternus · KeyBanc · Tim Cook · advanced memory chips · iPhone
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 7 SOURCES] Apple reported fiscal Q3 revenue of $109.42 billion, up about 16 % year‑on‑year. (Apple Q3 earnings)
- [● 2 SOURCES] Analysts gave Apple mixed ratings, with price targets ranging from $250 to $400. (Equity research analysts)
- [● 3 SOURCES] Component shortages, especially advanced memory chips, are constraining Apple’s production. (Apple executives)
- [● 6 SOURCES] Apple forecast revenue growth of 9 %–11 % for the September quarter. (Apple Q3 earnings)
- [● 3 SOURCES] Apple shares fell between 4 % and 10 % in after‑hours trading after the forecast. (Market reaction)
- [● 5 SOURCES] Tim Cook will step down as CEO on 1 September, succeeded by John Ternus. (Apple leadership announcement)
- [● 6 SOURCES] Apple posted net income of about $29.8 billion for the quarter. (Apple Q3 earnings)
- [● 6 SOURCES] Apple’s services revenue was $30.74 billion, below analyst expectations. (Apple Q3 earnings)
- [● 4 SOURCES] Apple shares fell roughly 5%–10% in after‑hours trading after the forecast. (Market reaction)
- [● 5 SOURCES] iPhone sales generated $54.2 billion in the quarter. (Apple Q3 earnings)
- [● 5 SOURCES] Advanced memory‑chip shortages are constraining Apple’s production and raising component costs. (Company statement)