Why Apple Stock Dropped on Friday

Apple stock fell 7.35% on Friday despite beating earnings expectations with 29% profit growth and 16% revenue increase to $109 billion. The decline was driven by weaker-than-expected forward guidance (9-11% growth vs. 12% expected) and warnings of worsening supply shortages impacting iPhone, Mac, and iPad sales due to surging component costs from AI infrastructure demand. However, CEO Tim Cook noted the shortages stem from unexpectedly strong demand rather than supply chain issues.