Supply-chain constraints limited Apple sales by $6bn
Supply-chain constraints cost Apple $6bn worth of sales in its latest fiscal quarter, according to CEO Tim Cook.
Cook made the comment on a conference call with analysts after Apple released its quarterly earnings report.
The company missed analyst expectations on earnings and revenue as shippers struggled to get Apple computers, cell phones and other devices into the hands of consumers, Cook wrote.
Net earnings rise 62.19%
Apple’s net earnings still rose 62.19% to $20.55bn from $12.67bn. Basic earnings per share of $1.24 were on par with the expectations of analysts polled by Dow Jones.
Revenue of $83.6bn, up 29.21% from $64.70bn in the same period in 2020, missed Wall Street expectations, according to Wedbush analyst Daniel Ives. In a research note that Ives provided to Capital.com, he wrote that Wall Street was expecting Apple to generate revenue of $85bn.
Meanwhile, iPhone revenue of $38.9bn fell below the Street’s $41.3bn forecast. Ives said supply-chain bottlenecks “crashed the iPhone 13 party this quarter and will be an overhang in the (next) quarter.”
Supply chain issue "transitory"
Ives called the supply-chain impact “transitory,” adding that it doesn't affect Wedbush’s bullish view on Apple and that the company is on track to realise a $3trn market capitalisation in 2022.
“That is the story from this print,” Ives wrote. “It’s not a demand issue but a supply issue that continues to be the elephant in the room for Apple and every other tech/consumer player heading into (the) holiday season.”
The global chip shortage remains the “hot-button issue” for Apple and all other tech players and automakers and serves as a “Rubik’s cube” for Apple in terms of iPhone 13 production.
With iPhone 13 inventories now low, there will be a shortage of the phones during the holidays if consumer demand maintains its current pace, Ives wrote.
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