Apple Inc. shares fell sharply in pre-market trading on Friday, dropping 7.3% after the company issued a stark warning that supply constraints are set to hamper growth.
The decline marks a significant reversal for the tech giant, which had seen its stock retreat only modestly in extended trading on Thursday following a quarterly earnings report that beat analyst expectations for revenue, earnings per share, and iPhone sales.
The fresh guidance highlights mounting pressure from semiconductor supply shortages and surging memory costs.
These operational headwinds have already forced Apple to raise prices on key products, a move that risks dampening consumer demand.
Investors are now looking beyond near-term shortages to gauge the broader impact on the company’s flagship iPhone lineup, which remains central to its revenue model.
The market’s reaction underscores a shift in sentiment from celebrating top-line beats to worrying about structural supply chain vulnerabilities.