Apple warns memory chip shortage as shares tumble after hours
Apple says it is facing a serious memory chip shortage that could slow down the supply of iPhones, MacBooks, and iPads.
After the announcement on July 30, Apple's shares dropped more than 5% in after-hours trading because its projected revenue growth, 9% to 11%, did not meet Wall Street's hopes.
CEO Tim Cook pointed to bottlenecks in advanced chipmaking and a rigid supply chain as the main reasons.
Tim Cook to retire September 1
The shortage is hitting Macs especially hard: prices for Macs and iPads have already gone up, with iPhone price hikes likely next.
Still, Apple pulled off record iPhone sales at $54.3 billion last quarter, up 21.7% from last year.
This all comes as Tim Cook prepares to retire on September 1 after 15 years as CEO; John Ternus will take over the lead role.