Tim Cook warns of global memory shortage as Apple shares drop nearly 10% on Friday
Apple shares fell nearly 10% on Friday, marking the company's worst single-day post-earnings sell-off since January 2013. The decline followed a forecast from CEO Tim Cook, who warned that a global memory shortage and supply chain constraints are impacting the business. While Apple reported strong third-quarter earnings per share of $2.02 on revenue of $109.4 billion, exceeding analyst expectations, the company is struggling to secure enough components due to the AI-driven data center boom. Tim Cook noted that the company paid significantly more for memory in the recent quarter and expects costs to rise further. These shortages have forced Apple to raise prices on Macs and iPads, with potential price increases for iPhones expected this fall. Analysts suggest that while the iPhone has weathered price hikes before, the rising costs and lack of supply chain flexibility may pressure margins and slow unit growth. The stock drop erased nearly $500 billion in market capitalization, returning the crown of the world's most valuable company to Nvidia.