Apple revenue forecast misses Wall Street targets, shares drop 6% after hours

Published Jul 31, 05:51 AM UTC

Apple reported fiscal third-quarter results that beat analyst expectations, with iPhone sales rising 21.7% to $54.25 billion and total revenue up 16.4% to $109.42 billion. However, the company's forecast for the current quarter fell short of Wall Street targets, projecting revenue growth of 9-11% versus the 12% expected. CEO Tim Cook cited significant supply constraints, particularly in advanced chipmaking technology used for Apple silicon chips, and noted limited flexibility in the supply chain. The company is evaluating alternative suppliers. Apple's shares dropped 6% in after-hours trading. Services revenue also missed targets. The supply chain is strained by heavy spending on AI data centers, leading to tensions with supplier Micron. Profits were $2.02 per share, above estimates of $1.89, partly due to U.S. tariff refunds.