Apple's Revenue Forecast Falls Short, Impacting Share Price

Apple's forecasted sales growth for the September quarter falls below Wall Street's expectations, causing a 7.8% drop in share price. Despite solid third-quarter performance, supply chain constraints and rising prices in Macs and iPhones impact future growth. Services revenue also underperforms against predictions.

Apple forecasted slower sales growth for the quarter ending in September, sending shares tumbling 7.8% in after-hours trading. Chief Financial Officer Kevan Parekh announced a targeted revenue growth of 9%, less than the 12% predicted by Wall Street.

Tim Cook, Apple's CEO, attributes the shortfall to supply constraints impacting the supply chain. While third-quarter sales and profits exceeded expectations, thanks to strong iPhone and MacBook sales, services revenue failed to meet targets.

Concerns linger over future quarters, as Apple's revenue growth is further challenged by increased prices for consumer electronics and industry-wide tech shortages. The company's gross margins exceeded expectations despite ongoing memory cost pressures.