Apple's stock price has fallen dramatically over the past couple of days, after the company announced is quarterly earnings on Thursday, and said supply constraints could affect the September quarter.
At the close of business on Thursday, Apple stock was the highest value it has ever been, worth about $340 per share. The company was also on the brink of a $5 trillion USD valuation - the highest out of any other public company.
The Q3 earnings call started off strong, reporting $109.4 Billion in revenue and growth across every product category, excluding iPad.
Apple also confirmed that iPhone and Mac demand was higher than expected, with double-digit growth in Mac year over year.
So why are investors selling their Apple stock?
Towards the end of the earnings call, Apple's CEO, Tim Cook, and CFO Kevan Parekh, explained that the current memory chip crisis will continue into the September quarter, possibly affecting the iPhone launch cycle, the most anticipated launch of the year.
This could potentially result in higher demand than the number of units in stock, leading to shipping delays and affecting sales and revenue numbers.
It is already becoming increasingly difficult to buy certain Mac models, with delivery dates pushed as far back as October.
Apple has traditionally been seen as the company that can weather supply-chain constraints, though this does not seem to be the case anymore.
Creative Strategies CEO, Ben Bajarin told the independent that "If even at Apple's scale they are saying they are out all supply chain flexibility, it's really bad for everyone."
The Numbers
Apple shares are currently worth $308.91, about 9.4% less than they were last week. The companies market cap as of Monday, sits at $4.54 trillion, wiping about $500 billion USD of valuation from the market in a matter of days.
Despite these dramatic numbers, Apple stock is up 13.98% in the past year-to-date, and up 14.63% since February.
