Apple: strong quarter but covid – glitches and silicon shortages are problematic

Apple: strong quarter but covid – glitches and silicon shortages are problematic

San Francisco, 4/30-22

After one of the strongest quarters in the company’s history, Apple warned that supply shortages will be „materially greater“ in the current quarter due to COVID disruptions and silicon shortages.

The company expects a $4 billion to $8 billion drop in revenue this quarter as it struggles to meet customer demand for its products.

The cuts „will affect most product categories,“ CEO Tim Cook told analysts.

The forecast comes after Apple reported financial results above analysts‘ estimates. Apple reported revenue of $97.3 billion for the January-March period, up 9% from the same period last year. Profit was $25 billion.

Broken down by category, the company reported March sales records in the iPhone, Mac and Wearables/Home/Accessories divisions. iPhone sales alone rose 5% to $50.6 billion.

The last seven quarters were the best ever for Mac, according to CFO Luca Maestri. Apple reported growth in nearly every category except iPads, where sales fell 2% from a year ago due to supply chain issues.

Apple’s services business, second only to iPhones, also rose 17% to nearly $20 billion. Services include subscriptions for TV+, music and fitness+.

The company expects third-quarter sales to be lower due to component shortages, disruptions in China (COVID-19), inflation eroding consumer purchasing power, and other issues.