Apple shares fell after a weak forecast. Sales will be affected by a shortage of memory chips

Apple's stock price fell sharply in after-hours trading on July 30 following the release of its quarterly earnings report. The company warned that its revenue for the current quarter would fall short of expectations due to "supply constraints" for components. Recently, due to a shortage of memory chips, the iPhone maker was forced to raise prices on its products.

Apple reported that its forecast calls for revenue growth of 9–11% in the fourth quarter of its fiscal year, which ends in September. The company’s forecast fell short of Wall Street analysts’ expectations—they had anticipated growth of more than 12%, according to Bloomberg.

Sales of iPhones, Macs, and iPads in the current quarter will be negatively impacted by constraints on component supplies, Chief Financial Officer Kewan Parekh said during a conference call with investors. According to him, revenue growth will also be hampered by currency fluctuations.

Due to a shortage of memory chips and computer processors, Apple raised prices on Mac computers and iPad tablets in June, passing the increased costs on to consumers. Supply chain issues have also increased wait times for key computer models, such as the Mac mini and Mac Studio, according to Bloomberg.

Following the earnings announcement, Apple's stock fell by about 8% in after-hours trading.

This news story is being updated

This article was AI-translated and verified by a human editor