Apple beat expectations in its latest quarterly results, but its shares still fell about 1.9% after the company gave a weaker-than-expected forecast for profit margins over the holiday season.
The pressure comes from two directions: the rising cost of memory chips and the expense of running the servers behind its artificial intelligence features. According to an analysis by ATB Wealth, Apple plans to offset some of those costs through selective price increases on hardware and higher prices for its iCloud+ storage subscriptions.
Investors were also concerned about slower expected growth in Apple's services business, limited supply of its newly launched foldable phone, the iPhone Duo, and weaker sales in China.
The results came during a turbulent week for technology stocks, which fell sharply on Thursday amid wider worries about the cost of the AI boom.