Apple share price falls as Cook warns of supply squeeze

Apple share price tumbled more than 7% after hours as Tim Cook warned of significant supply constraints for Mac, iPhone, and iPad. Hot demand outran advanced chips and memory, and Apple forecast slower revenue growth of about 9–10% this quarter, below Wall Street’s expectations.

The drop followed Cook’s final earnings call as CEO, even as Apple posted strong June-quarter results. Investors watching tech wealth themes can find more market coverage in our Net Worth & Wealth hub.

Key Takeaways

• Apple shares fell more than 7% after hours—and as much as about 8% at the lows—on the supply outlook.
• Constraints already limited Mac availability and are expected to worsen for iPhone and iPad.
• June-quarter revenue rose 16% to $109.4 billion; iPhone and Mac sales grew 22% and 25%.
• Cook called memory pricing a “hundred year flood” and said Apple will scramble on supply next quarter.
• Current-quarter revenue growth is guided near 9–10%, with iPhone growth slowing to the mid-teens.

Why did Apple share price fall after earnings?

Wall Street focused less on the beat and more on the bottleneck. According to the BBC, shares slid more than 7% after hours despite a 16% revenue jump to $109 billion and a 26% rise in profits to about $29 billion.

Yahoo Finance reported after-hours losses of as much as 8%, with the stock later down roughly 6% from a $333.85 close. Apple guided total revenue growth of about 9–10% year over year for the current quarter—below the roughly 12% analysts had expected.

iPhone sales, about half of Apple’s business, are expected to grow at a mid-teens percentage rate this quarter, down from 22% growth in the June quarter. Gross margins, reported at 48% excluding tariff-refund benefits, are also expected to come under pressure.

What supply constraints did Tim Cook describe?

Cook said Apple is seeing “very significant constraints” with “limited flexibility in the supply chain.” The BBC reported that Mac availability has already been hit, and the squeeze is expected to spread to iPhone and iPad.

Part of the pinch involves advanced-node processors, largely made for Apple by Taiwan’s TSMC. Cook insisted the root problem was demand forecasting, not a routine shortage: iPhone and Mac sales surged 22% and 25% in the June quarter, and he said Apple has “a quarter ahead where we’ll be scrambling on the supply side.”

Memory is another flashpoint. Cook called DRAM pricing a “hundred year flood,” after Apple raised Mac and iPad prices earlier this year to offset chip costs. AI data-center demand has tightened supply, he said, in a market dominated by Micron, SK Hynix, and Samsung.

How will Apple’s growth look as Cook hands over?

Apple still booked $109.4 billion in June-quarter revenue and $29.8 billion in net income, or $2.02 per share, beating estimates. Roughly 11 cents of EPS came from a tariff refund; Cook said Apple intends to reinvest those refunds in the United States.

Cook, who hands the CEO role to John Ternus in September, said he remains highly optimistic about Apple’s AI path, including on-device processing for a refreshed Siri still in public beta. For now, though, the near-term story for Apple share price is supply, slower growth guidance, and margin pressure—not the solid quarter just reported.