Apple Stock Drops 10% Amid Supply Chain Woes

The decline, which marked Apple's worst single-day performance in over a decade, came after the company warned that ongoing chip and memory shortages would persist into the next quarter. The forecast, released after market close on Thursday, projected revenue below analyst expectations, citing production delays and higher component costs.

Chief Executive Tim Cook said in a conference call that supply constraints were affecting iPhone and Mac production, with memory chip shortages being particularly acute. He added that Apple was working with suppliers to mitigate the impact but expected the situation to continue through the holiday season.

The sell-off dragged down other tech stocks, with the Nasdaq composite falling 2.3% on the day. Analysts noted that Apple's reliance on a limited number of chip suppliers made it vulnerable to disruptions, despite its efforts to diversify its supply chain in recent years.

Investors are now watching for potential ripple effects on consumer demand, as higher component costs may force Apple to raise prices on some models. The company said it would provide more details on its pricing strategy during its next earnings call in October.