Apple Blames Chip Shortages and Slow Supply Chain for Disappointing Quarter | Apple
Apple shares edged down on Thursday after the company reported lower than expected revenue in the fourth quarter of 2021.
The company posted quarterly revenue of $ 83.4 billion, up 29% year on year, but still below analysts’ forecast of $ 84.85 billion.
CEO Tim Cook attributed the shortcomings to supply chain issues, citing industry-wide chip shortages and “Covid-related manufacturing disruptions in Southeast Asia.”
“We had a very good performance despite larger than expected supply constraints, which we estimate at around $ 6 billion,” Cook added.
Apple launched a number of new products this quarter, including the iPhone 13, 13 Pro, and 13 Pro Max, third-generation Airpods, and most recently a new MacBook Pro model powered by a custom chip.
The devices have seen continued success – iPhone sales are up 47% from a year ago and iPad sales are up 21% from the same quarter last year.
Apple anticipates a much greater demand for its new iPhone 13 models than it can supply.
“Apple has had an exceptional year with the iPhone 13 despite all the challenges in the global supply chain,” said Tom Johnson, analyst at WPP Mindshare. “You’ll see the familiar lines outside Apple stores this Christmas.”
In remarks to investors Thursday, Cook underscored the company’s efforts for social justice and the climate crisis by reducing the amount of plastic in the packaging of its products. Cook also spoke about Apple’s Developer Academy in Detroit, a new accelerator aimed at helping black, Latin and Indigenous businesses.
“We infuse our values into everything we make – we are moving closer to our 2030 goal of being carbon neutral throughout our supply chain and throughout the lifecycle of our products, and always pushing forward. our mission to build a more equitable future, ”he said. .