Recently, tech giant, Apple posted substantial earnings for its fourth fiscal 2021 quarter, announcing all-time highs for its assistance and Mac divisions. The corporation states that it took in revenue of $83.4 billion, a year-over-year rise of 29 percent, and profits per share of $1.24. That profits number came in below Wall Street expectations of $84.85 billion, due to the global chip shortage.
Global Chip Shortage Brought Down a Loss of $6 Billion to Apple
As the CEO, Tim Cook stated that supply chain constraints had a clear impact on monetary results this quarter. “We had a very strong performance despite larger than expected supply constraints, which we estimate to be around $6 billion,” CEO Tim Cook told, crediting the supply problems to “the global chip shortages that have been talked about a lot and COVID-related manufacturing disruptions in Southeast Asia.”
Apple expects an even greater loss from supply chain concerns caused by the global chip shortage in the December quarter, it announced during Thursday’s profits call. The company is fresh off the rollout of several new products, including the iPhone 13 and 13 Pro, a new iPad mini, ninth-gen iPad, Apple Watch Series 7, third-generation AirPods, and most recently, the eagerly awaited MacBook Pro powered by Apple silicon.
There Was a Delay in the Launch of Apple Products
Moreover, the latest iPhones weren’t released until late in the quarter, but the iPhone market as a whole continued to exhibit strong momentum and was increased by 47 percent over a year ago. The iPad was likewise up 21 percent over the year-ago quarter.
In addition to this, like other giant tech companies, and as CEO Tim Cook made clear, Apple is dealing with significant supply chain difficulties impacted by the global chip shortage: the high-end iPhones remain tough to find in stock at Apple retail locations, and its 14-inch and 16-inch MacBook Pros are already rigorously back-ordered.
Source: The Verge