Apple Is Down 10%. Should Investors Buy the Dip?

Apple shares dropped 10% following a quarterly report that delivered record earnings but guidance that fell short of Street expectations. The company projected Q4 revenue growth of 9-11%, missing the 12% analyst consensus.

The miss came despite 16% year-over-year revenue growth in the reported quarter. Services revenue landed at $30.7 billion, below expectations, while management flagged severe DRAM and NAND memory shortages driving up input costs. Apple characterized the memory supply constraint as an industry-wide issue rather than company-specific procurement weakness.

The selloff reflects immediate concern over margin pressure and decelerating topline momentum. Memory shortages typically compress hardware margins, and the softer services print removes a key offset. The guidance gap—100 to 300 basis points below consensus—suggests management sees the supply headwinds persisting through at least the next quarter.