APPLE NEWS

Apple shares are falling as Tim Cook warns of holiday offer restrictions


Source: Joseph Keller / iMore

Apple shares fell more than 3% in pre-market trading as Tim Cook warned of constant supply constraints across the entire range of products going into the holiday season.

Apple reported record revenue in September of $ 83.4 billion, but estimated supply restrictions cost the company about $ 6 billion, from Tim Cook:

Of course. If you look at Q4 for a moment, we had about $ 6 billion in supply constraints, and that affected the iPhone, iPad, and Mac. We had – there were two reasons for them for Q4. One was the chip shortage that you heard a lot about from various companies in the industry. And the other was a production shutdown in Southeast Asia linked to COVID. The second of them, disorders due to COVID, significantly improved during October to the place where we are at the moment.

As Cook noted, the COVID factor improved significantly in October, but said that looking ahead, “we think the primary cause of the shortage in the supply chain will be a lack of chips.” Cook said that it will affect “quite the majority of our products”, including his best iPhone, Mac, iPad and many more. Cook noted, however, that chip shortages occur at older nodes for older devices such as the iPhone 12, as opposed to devices like the iPhone 13. However, restrictions are expected to continue, as CFO Luca Maestri noted:

As we mentioned earlier, during the September quarter, supply constraints affected our revenue by about $ 6 billion. We estimate that the impact of supply constraints will be greater during the December quarter. Despite this challenge, we see high demand for our products and expect to achieve very solid revenue growth over the previous year and set a new revenue record during the December quarter.

Cook said that Apple estimates that the limits in the first quarter will be higher than 6 billion dollars, but that this is partly because the holiday quarter is usually Apple’s strongest and overall has much more supply than in the fourth quarter.

VPN offers: Lifetime license for $ 16, monthly plans of $ 1 and up

With growing demand for new products and growing supply problems on the horizon, Apple Black Friday’s best deals are already a great place to find early discounts and rewind the crowds this holiday season.





Source link

Naveen Kumar

Friendly communicator. Music maven. Explorer. Pop culture trailblazer. Social media practitioner.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button