Apple suffers worst rout since 2025 on disappointing outlook

Apple Inc. has experienced its worst stock decline in 16 months after reporting disappointing sales forecasts due to component shortages, which have affected the company's revenue growth. The company's forecast for the fiscal fourth quarter, which runs through September, indicated a growth rate of 9-11%, below analysts' expectations of over 12%.

This decline was exacerbated by challenges in securing computer processors and rising memory costs, leading to price increases on Macs and iPads. Furthermore, currency fluctuations and regulatory changes to Apple's App Store business model in the EU and other regions are also impacting the company's growth. Despite these challenges, total sales for the quarter exceeded estimates, climbing 16% to $109.4 billion.

The iPhone, Apple's biggest moneymaker, showed strong performance with a 22% revenue increase to $54.3 billion. However, the outlook for services growth is expected to decelerate, and Apple's results also showed weaker-than-expected revenue in China and from services during the June quarter.

Brief written by urgent.news from Hindu BusinessLine's own syndicated text. Machine-written — may contain errors; check the original before relying on it.