New York
Apple shares fell 7.3 per cent in premarket trading on Friday after the technology giant warned that supply constraints could slow growth, shifting investor attention towards iPhone demand and the possibility of higher prices.
If the decline continues during regular trading, Apple could lose about $361.6 billion in market value. The company’s outlook highlighted growing pressure across the technology industry as strong demand linked to artificial intelligence tightens supplies of advanced chips and memory, raises costs and extends supply-chain bottlenecks.
Apple said shortages in advanced chipmaking capacity were limiting the availability of iPhones, Mac computers and some iPad models. Chief Executive Tim Cook said the weaker outlook was driven by supply constraints rather than declining consumer demand.
The company forecast revenue growth of between 9 per cent and 11 per cent for the current quarter, below Wall Street expectations of around 12 per cent. Apple also projected mid-teens growth in iPhone revenue, which was lower than analysts had anticipated.
Despite the cautious outlook, Apple reported strong iPhone sales in the June quarter. Revenue from iPhone sales increased 21.7 per cent to $54.25 billion, exceeding analyst estimates of $53.86 billion and marking the company’s strongest third-quarter iPhone performance.
Investors are now closely watching whether Apple can increase iPhone prices later this year without weakening demand. Analysts said the upcoming iPhone product cycle, new artificial intelligence-powered Siri features and Apple’s device-upgrade programmes could help support higher prices.
J.P. Morgan analysts said strong demand was encountering supply and cost pressures but noted that shortages could delay sales rather than permanently reduce them. This could allow some revenue to shift into future quarters.
Apple is also preparing for a leadership transition, with Tim Cook expected to step down as chief executive at the beginning of September. John Ternus is set to take over, marking a major change at one of the world’s largest technology companies.
