APPLE EARNINGS SOAR BUT CHIP SHORTAGE THREATENS FIRM
Apple Inc.’s latest quarter was a blockbuster, with soaring revenue, record Mac sales, and stronger-than-anticipated iPhone demand. There was only one major snag: The global chip shortage is finally catching up to the company, Mark Gurman reported for Bloomberg News.
The Cupertino, California-based technology giant didn’t provide specific revenue guidance for the fiscal third quarter. Analysts estimate revenue will top $68.7 billion, according to data compiled by Bloomberg mostly before Wednesday’s results.
In Apple’s fiscal second quarter, the Mac generated a record $9.1 billion in sales, while the iPad topped Wall Street expectations with $7.8 billion in revenue.
On a call with analysts, Chief Executive Officer Tim Cook and Chief Financial Officer Luca Maestri warned that supply constraints are crimping sales of iPads and Macs, two products that performed especially well during pandemic lockdowns.
Maestri said this will knock $3 billion to $4 billion off revenue during the fiscal third quarter.
The executives blamed “semiconductor shortages that are affecting many industries” and “very, very high” demand for iPads and Macs. Cook said the component shortages were for “legacy nodes,” implying the setbacks are for products using older generation processors.
He wouldn’t specify how long the shortages will last but noted that Apple did not experience this problem during the previous quarter.