Tim Cook warns of rising memory costs as Apple stock falls nearly 10% following third-quarter earnings report.
Apple stock fell nearly 10% on Friday after the company reported third-quarter earnings that exceeded analyst expectations for revenue and earnings per share. Despite beating estimates, the stock price dropped as CEO Tim Cook warned of the significant impact of a global memory shortage on the company's business. Tim Cook noted that Apple paid more for memory in the past three quarters and expects costs to continue rising in the upcoming September quarter. These rising costs have already forced the company to raise prices on its Macs and iPads, though the iPhone has remained stable for now. While iPhone revenue reached a record high for the June quarter, revenue from the Services segment and Greater China also fell short of analyst projections. Analysts suggest that rising memory costs could pressure iPhone margins in the future, with some experts predicting that higher prices may eventually slow unit and user growth. The company's new Apple Upgrade service, which allows customers to lease devices, may help mitigate these concerns as the company prepares for the transition to new leadership under incoming CEO John Ternus.