Apple Stock Drops 10% Amid Supply Chain Woes

The drop, the steepest single-day decline for the company in over a decade, came after Apple said supply constraints would persist into the next quarter. The company cited ongoing shortages of semiconductors and memory chips, which have hampered production of its latest iPhone models and MacBooks.

In its earnings report released Thursday, Apple projected revenue for the current quarter below analyst expectations, blaming the supply issues for the shortfall. The company also noted that it had been unable to build enough inventory to meet strong consumer demand, particularly for its higher-end devices.

The sell-off dragged down other technology stocks, with the Nasdaq Composite falling 2.3% on the day. Several suppliers to Apple, including chipmakers and component manufacturers, also saw their shares decline as investors worried about the ripple effects of the shortages.

Apple said it is working with suppliers to secure additional capacity and diversify its supply chain, but executives warned that the constraints are likely to ease only gradually. The company did not provide a specific timeline for when production would fully recover.

The market value loss of roughly $500 billion brings Apple's market capitalization to about $4.5 trillion, still the largest among U.S. companies. Analysts said the drop reflects growing concerns about the global semiconductor supply chain, which has been strained by geopolitical tensions and increased demand for electronics.