Apple Drops 7% on Weak Q4 Outlook, Memory Chip Warning
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- Apple shares fell nearly 7% on Friday after the company's Q4 revenue outlook came in below analyst expectations, with GF Securities lowering its rating on the stock
- Apple projected Q4 revenue growth of 9% to 11% year-over-year, compared with the 12.1% growth analysts had projected
- Apple expects iPhone revenue to rise by a mid-teens percentage, while Services growth tracks the fiscal third quarter excluding FX effects
- Apple warned that currency movements could reduce quarterly revenue growth by approximately 250 basis points
- Apple flagged supply limitations, particularly for memory components, as creating greater pressure during the period
- GF Securities analyst Jeff Pu downgraded Apple to Hold, citing valuation and potential demand risks from higher memory costs, setting a $369 price target
- Shares were down about 9% at $302.47 in morning trading, trading above 30 times estimated fiscal 2027 earnings
Why it matters: Apple's projected 9-11% Q4 growth missed the 12.1% consensus, and a memory chip supply warning — plus an analyst downgrade specifically citing higher memory costs as a demand risk — signals that component costs and FX headwinds (250 bps) are now overtaking the iPhone growth narrative for the stock.
