Tim Cook Warns of Memory Shortages and Supply Constraints as Apple Shares Fall Following Q3 Earnings
Apple shares fell nearly 10% on Friday after the company reported third-quarter earnings that mixed with warnings about future supply challenges. Tim Cook, the outgoing CEO, noted that the company paid significantly more for memory this quarter and expects costs to continue rising. While iPhone and Mac sales outpaced expectations, revenue from the Services division fell slightly below analyst projections. Tim Cook highlighted that supply constraints in chip manufacturing and memory components are creating pressure on the company's business. These costs have already forced price increases on Macs and iPads, though the iPhone has not yet seen a price hike. Analysts suggest that higher memory costs could eventually pressure iPhone margins and slow unit growth if prices rise too high. This earnings call marked the final report for Tim Cook before he hands the leadership to John Ternus on September 1. Despite the mixed results, Tim Cook expressed optimism about the company's future and the leadership of his successor.