Apple Inc. is on track to erase $460 billion from its market capitalization, marking the steepest post-earnings decline in the company’s history over the past 13 years.
The massive valuation reset follows a period of intense selling pressure that began after the tech giant reported quarterly results that, while exceeding analyst expectations, were overshadowed by stark warnings about supply chain limitations.
Shares suffered their steepest decline in more than a year on Thursday, falling approximately 8% in extended trading.
The sell-off accelerated as investors digested the company’s guidance that memory chip shortages are set to hamper growth in the coming quarters.
This supply-side bottleneck has already forced Apple to raise prices on Mac and iPad products by up to 25%, a move that has strained consumer sentiment and raised questions about demand elasticity in a cooling tech environment.
Market reaction has been severe and sustained.
Shares suffered their steepest decline in more than a year on Thursday, falling approximately 8% in extended trading.
The downward momentum continued into Friday, with shares dropping another 7.3% in pre-market trading as the reality of the supply constraints sank in.
This represents a significant reversal for the tech giant, which had previously been buoyed by optimism around its AI initiatives and autonomous Siri agents launched at WWDC.