Apple shares fall 7% as Q4 revenue forecast misses estimates; Cook flags rising memory costs

Published Jul 31, 01:04 PM UTC

Apple's stock dropped 7% on Friday after the company reported third-quarter earnings that beat analyst expectations on strong iPhone sales, but fell short on Services and Greater China revenue. The company posted $109.4 billion in revenue, up 16% year-over-year, with iPhone revenue growing 22% to a June quarter record. However, Apple's fourth-quarter revenue forecast of 9% to 11% growth missed the consensus estimate of 12.1%. CEO Tim Cook highlighted rising memory and storage costs driven by the global AI infrastructure build-out, noting that Apple has paid more for memory in each of the past three quarters and expects further increases. This has led Apple to raise prices on Macs and iPads, with potential iPhone price hikes expected in September. The stock pulled back from near-record highs after outperforming Magnificent Seven peers.