Apple shares fall after forecast cites supply limits

Apple shares fell by as much as eight percent in after-hours trading on Thursday after the company forecast current-quarter revenue growth of between nine and 11 percent and cited supply constraints.

The Cupertino-based company reported sales of $109.4 billion for the April-to-June period, up 16 percent from a year earlier. Profit rose 27 percent to $29.8 billion.

Apple said iPhone sales rose 22 percent to $54.3 billion, while Mac revenue climbed 29 percent. Its services business, including the App Store, iCloud, Apple Music and advertising, grew 12 percent to $30.7 billion.

Chief executive Tim Cook told analysts that the supply constraints came from unexpectedly strong demand for the iPhone and Mac. In a company statement, Cook called it Apple's strongest June quarter ever.

The earnings announcement was expected to be Cook's last as chief executive. John Ternus is due to take over as Apple chief executive on September 1, with Cook becoming executive chairman of the board.

Apple also said its latest performance was boosted by refunds of tariffs imposed last year by Donald Trump and overturned by the US Supreme Court in February.