Apple shares fall 7.3% on supply concerns

• Apple shares fell 7.3% before the market open after the company warned of supply constraints affecting growth.
• The decline could erase about $361.6 billion in market value if losses continue.
• Investors are watching potential iPhone price increases and whether demand remains strong.

Apple (NASDAQ:AAPL) shares fell 7.3% before the market open on Friday after the company warned that supply constraints could limit growth, raising concerns about future product availability.

The decline placed Apple on track to lose approximately $361.6 billion in market value, while investors assessed the impact of chip shortages, higher costs and potential iPhone price increases.

“Demand robustness is running into a wall of supply and cost challenges,” said J.P. Morgan analysts led by Samik Chatterjee.

Apple said shortages in advanced chipmaking capacity were limiting supplies of iPhones, Macs and some iPads, while the company forecast current-quarter revenue growth of 9% to 11%, below Wall Street expectations of about 12%.

The company’s outlook raised concerns about near-term sales growth.

Apple reported iPhone revenue of $54.25 billion in the June quarter, up 21.7% year over year and above analyst estimates of $53.86 billion.

Investors are also monitoring Apple’s upcoming leadership transition, with Tim Cook scheduled to leave the chief executive role for John Ternus in September, after a period of expansion in products and services.