Apple Shares Drop as Component Shortages Limit Hardware Sales

Apple Inc. experienced its weakest four-day stock performance since April 2025, with shares declining more than 10% over four sessions. The trend continued Monday with a further 1.5% drop after the company issued a revenue growth forecast of 9% to 11% for the current quarter, failing to meet the 12% growth expectation held by Wall Street.

Chief Executive Tim Cook identified significant component shortages as the primary factor restricting the company's ability to meet demand for iPhones and Mac computers. He noted that competition for processors and memory has increased due to the expansion of AI data centers. While the company's quarterly revenue and earnings actually exceeded expectations, investors reacted poorly to these hardware limitations and a slowdown in services operations.

Following the announcement, several brokerages reduced their price targets for the company, reflecting concerns over the impact of the AI-driven supply chain squeeze on Apple's growth trajectory.