Apple Slides 6% as Chip Shortages Cloud Earnings Beat

Apple remains heavily dependent on the iPhone, while the Mac and services businesses reinforce the profitability of its broader ecosystem. That makes access to advanced chips and other components crucial to sustaining growth and margins. The results also come ahead of a leadership transition: John Ternus is due to become chief executive on Sept. 1 and will inherit pressure to accelerate Apple’s generative-AI efforts while stemming the loss of key talent to OpenAI.

Apple on July 30 reported revenue of $109.42 billion for its fiscal third quarter ended June 27, up 16% from a year earlier and above the $109 billion FactSet consensus. Earnings of $2.02 a share also beat the $1.89 estimate, as iPhone and Mac sales rose 22% and 29%, respectively. The company, however, projected current-quarter revenue growth of just 9% to 11% and warned that supply constraints would intensify, sending its shares down more than 6% in after-hours trading.