Apple Falls 7% as Cook Warns of Rising Memory Costs
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- Apple stock sank 7% on Friday, July 31, 2026, pulling back from near-record highs after gaining roughly 13% year to date and outperforming its Magnificent Seven peers.
- Apple's Q3 revenue hit $109.4 billion (up 16% YoY), with iPhone revenue growing 22% to a record June quarter — beating top- and bottom-line analyst expectations.
- Greater China revenue came in at $18.8 billion, missing analyst estimates of $19.5 billion, while the Services segment posted $30.7 billion versus ~$31.3 billion expected.
- Apple issued Q4 revenue guidance of 9-11% growth, short of Wall Street's consensus estimate of ~12.1%.
- CEO Tim Cook warned that Apple paid more for memory in each of the past three quarters and that the company expects costs to rise again in the September quarter, with the memory market continuing to price upward beyond that.
- Apple has already raised prices on Macs and iPads amid the global memory crunch, though the iPhone has been spared so far; next-generation iPhones are widely expected to see price hikes at Apple's annual September showcase.
Why it matters: Apple's 'restrained AI capex' narrative cracked Friday when Tim Cook confirmed memory costs have risen three straight quarters. Macs and iPads are already repriced, next-gen iPhones are widely expected to follow at September's showcase, and the 7% stock drop with 9-11% Q4 guidance (vs. 12.1% consensus) shows Wall Street repricing Apple's margin-protection story.
