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Supply-chain constraints limited Apple sales by $6bn

By Monte Stewart


Apple MacBook
Apple misses revenue expectations - Photo: Shutterstock

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, 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.


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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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The difference between stocks and CFDs:

The main difference between CFD trading and stock trading is that you don’t own the underlying stock when you trade on an individual stock CFD.

With CFDs, you never actually buy or sell the underlying asset that you’ve chosen to trade. You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional stock trading you enter a contract to exchange the legal ownership of the individual shares for money, and you own this equity.

CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional stock trading, you buy the shares for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks.

CFDs attract overnight costs to hold the trades, (unless you use 1-1 leverage) which makes them more suited to short-term trading opportunities. Stocks are more normally bought and held for longer. You might also pay a stockbroker commission or fees when buying and selling stocks.

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