Apple shares dropped 7.3% before the bell on Friday as the tech giant warned that supply constraints would hurt growth, prompting ​investors to look beyond near-term shortages to gauge the hit from ‌an expected iPhone price hike.

The decline puts Apple on track to shed roughly $361.6 billion in market value, if the losses hold.

The company's outlook highlighted a broader industry challenge, with ​AI-driven demand tightening supplies of advanced chips and memory, driving up ​costs and prolonging supply-chain bottlenecks across the technology sector.

Apple said on ⁠Thursday that shortages of advanced chipmaking capacity were limiting supplies of iPhones, ​Macs and some iPads, with Chief Executive Tim Cook saying supply constraints, rather ​than weak demand, was driving the softer outlook.

Cook will vacate the top job at the tech firm for John Ternus at the start of September, capping a leadership era that ​helped build Apple into the world's most valuable company and a top-performing ​member of the "Magnificent Seven".

"Demand robustness is running into a wall of supply and cost challenges," ‌J.P. ⁠Morgan analysts led by Samik Chatterjee said, adding that supply constraints were likely to defer sales rather than destroy them, with revenue expected to be realized in future quarters.

Apple forecast 9% to 11% revenue growth for the current quarter, ​below Wall Street expectations ​of about 12%, ⁠while projecting mid-teens percentage growth in iPhone revenue that also lagged analyst estimates.

iPhone sales in the June quarter rose ​21.7% to $54.25 billion, above estimates of $53.86 billion and marking the ​best-ever ⁠iPhone sales for the third quarter.

Apple is widely expected to raise iPhone prices later this year, but investors are increasingly focused on whether it can raise them ⁠without denting ​demand.

TD Cowen analysts said the upcoming iPhone ​cycle, AI-powered Siri features and Apple's upgrade program could allow the company to increase prices "without significant demand ​destruction." (Reuters, 2026-07-31)