Apple slides; investors focus on iPhone sales
AAPL•Pricing, suppliers and valuation
Apple raised iPad and MacBook prices last month as it sought to offset cost increases from a shortage of memory and storage chips caused by massive AI datacenter buildouts, but kept iPhone prices unchanged.
Key supplier Qualcomm said on Wednesday that supply constraints would reduce its component share in the next iPhone launch.
Apple has surged about 22% year to date, outperforming the Nasdaq's 7.7% gain, trading about 4% below its record intraday high from July 29.
Shares recently traded at 35 times forward earnings estimates, above a five-year average of 28, suggesting potential overvaluation.
Revenue and earnings expectations
The iPhone maker is expected to post a 16% rise in third-quarter revenue to $108.65 billion and adjusted EPS of $1.89 versus $1.57 a year ago, per LSEG.
Apple shares fall ahead of quarterly results
Apple shares fell 1.9% on Thursday ahead of quarterly results after the bell, with investors focused on sales growth after the company kept iPhone prices steady.
