Apple lost $6 billion in Q4 due to a chip shortage and manufacturing delaysVisual Media Factory
Apple’s fourth fiscal quarter earnings were strong, with all-time highs for its services and Mac divisions. The company reported revenue of $83.4 billion, up 29 percent year over year, and earnings per share of $1.24. The company’s earnings fell short of Wall Street’s expectations of $84.85 billion.
Supply chain constraints, according to CEO Tim Cook, had a significant impact on financial results this quarter. “We had a very strong performance despite larger-than-expected supply constraints, which we estimate to be around $6 billion,” Cook said, citing “industry-wide chip shortages that have been talked about a lot and COVID-related manufacturing disruptions in Southeast Asia” as reasons for the supply issues. During Thursday’s earnings call, Apple stated that supply chain issues will cost the company even more in the December quarter.
The iPhone 13 and 13 Pro, a new iPad mini, the ninth-generation iPad, Apple Watch Series 7, third-generation AirPods, and, most recently, the eagerly anticipated MacBook Pro powered by Apple silicon have all recently been released by the company. Despite the fact that the latest iPhones weren’t released until late in the quarter, the iPhone business as a whole continued to grow at a rapid pace, with sales up 47 percent year over year. The iPad was also up 21% from the previous quarter.
Apple, like other large tech companies, is facing major supply chain challenges, as Cook stated: high-end iPhones are still hard to come by in Apple stores, and the 14-inch and 16-inch MacBook Pros are already heavily back-ordered. Regularly checking stock at local Apple stores is the best option if you don’t want to deal with long shipping delays. But even that isn’t a sure thing, and the reality is that getting your hands on Apple’s latest gadgets is more difficult than it has been in the past.