Apple shares fell about 8% after the company released fiscal third-quarter results and gave weaker guidance for the current period. The market reaction came even though Apple reported earnings and revenue that were better than expected.
A major driver in the quarter was iPhone demand. Apple said iPhone sales climbed 22%, helping lift overall performance and showing continued strength in one of the company’s most important product lines.
The pressure on the stock came from Apple’s outlook rather than the quarter that just ended. Management pointed to supply constraints as a reason for softer revenue guidance, signaling that operational limits could weigh on near-term results even with solid demand.
The update also drew extra attention because Tim Cook addressed investors in what was described as his last time doing so as CEO. That added another layer of focus to an earnings report that combined strong recent performance with a more cautious view of the months ahead.
