The supply chain crisis cost Apple $ 6 billion in lost sales

Image for the article titled Supply Chain Crisis prevents Apple from selling all the products it wants, costs the company $ 6 billion

Photography: Caitlin McGarry / Gizmodo

People want Apple products. Although Apple would gladly comply, it cannot, because there is a global supply chain crisis. The crisis has cost the company billions in lost sales and keeps its money machine, the iPhone, at a distance from customers.

Apple CEO Tim Cook on Thursday he told CNBC that supply chain constraints and interruptions in COVID-19 production cost the company about $ 6 billion in lost sales. Cook made comments in light of the announcement companies financial results for the fourth quarter for the fiscal year, which missed analysts ’earnings and revenue estimates for the first time in years.

That’s not to say Apple didn’t have a successful quarter. It earned $ 83.4 billion in revenue, an increase of 29% over the previous year, and grew in all markets and product categories. The company simply did not work as expected, it failed about $ 85 billion in quarterly revenue that analysts forecast.

“We had very good performance despite greater supply constraints than expected, which we estimate to be around $ 6 billion,” Cook said, CNBC reports.. “Supply constraints were caused by the much-talked-about lack of chips in the entire industry and the interruptions in production in Southeast Asia associated with kovid.”

In an interview with analysts, Cook said covid-related production disruptions have improved, but chip shortages to stay. Restrictions on the supply of chips are related to the chips on the old nodes, he added.

Missed sales opportunities caused by a bid violation — which it is affected iPhone 13 as well as older products such as iPhone 11, iPhone 12, 2021 iMac and Mac Pro, among others—will only get worse during the holiday season, Apple CFO Luca Maestri warned during the call, the Associated Press logged in.

Despite that, Apple expects the December quarter to give its results maximum income in the history of the company. This could indicate that Apple sees great demand for this device iPhone 13 and its other recently announced products, such as iPad mini,, Apple Watch 7 Series, third generation AirPods, i MacBook Pro.

The company’s financial results in the fourth quarter also provided a better insight into the performance of the iPhone, Apple’s Golden Goose. It may be hard to believe, but iPhone sales rose to $ 38.9 billion, an increase of 47% in the year done years. In other words, the company has managed to create a cult iPhone that is upgraded often enough to make tons of money.

Still, Cook said the lack of a chip prevents Apple from selling as many iPhones as it would like.

“Demand is still very strong,” he said.

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Naveen Kumar

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

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