Shares of Apple cratered as much as 11% on the Buenos Aires exchange, extending a U.S. selloff that began after the company posted record June-quarter results but paired them with a cautious outlook. Revenue rose 16% to $109.4 billion and EPS climbed 29% to $2.02 , yet the market zeroed in on two soft spots and a worrying forecast. Apple suffered its worst stock decline in 16 months , raising a blunt question: if a record quarter isn't enough, what is?
• The Services Engine Sputtered When It Mattered Most
Services revenue of $30.74 billion missed the $31.22 billion Wall Street expected . Growth decelerated to 12.1% from 16.3% in the prior quarter . That matters enormously because Services — subscriptions, App Store fees, cloud storage — carry fatter profit margins than hardware. A slowdown here directly threatens Apple's ability to keep expanding earnings faster than revenue, the engine behind its premium stock price.
• China Sales Grew but Still Disappointed
Greater China sales totaled $18.8 billion, well below analyst projections of $19.6 billion , despite IDC estimating Apple captured 18.1% of Chinese smartphone shipments, up from 13.9% a year earlier . Gaining share in a shrinking market is encouraging, but the revenue miss signals either weaker pricing power or a consumer still trading down — neither of which shareholders want to hear heading into a new iPhone launch cycle amid fierce competition with Huawei and other local brands .
• Supply Crunch Clouds the Outlook More Than the Results
Apple guided for 9%–11% revenue growth in the September quarter, below the 12%-plus analysts had modeled . Management blamed supply constraints and severe memory-chip price inflation . Component shortages mean Apple may not be able to build enough of the next iPhone to meet demand and could face higher costs on every unit it does ship — a double squeeze on margins and revenue.
• A Leadership Transition Adds Uncertainty
This was Tim Cook's final quarter as CEO; hardware chief John Ternus takes over September 1 . The handoff comes at a precarious moment: R&D spending surged 32% to $11.7 billion as Apple ramps AI investments. Whether Ternus can convert that spending into products that reignite Services and China remains the open bet for shareholders absorbing today's losses.