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Supply chain woes cost Apple $6B in sales ahead of worse holiday quarter, CEO says – National

Provide chain woes price Apple Inc $6 billion in gross sales in the course of the firm’s fiscal fourth quarter, which missed Wall Avenue expectations, and Chief Government Tim Prepare dinner stated that the affect might be even worse in the course of the present vacation gross sales quarter.

Prepare dinner informed Reuters on Thursday the quarter ended Sept. 25 had “bigger than anticipated provide constraints” in addition to pandemic-related manufacturing disruptions in Southeast Asia. Whereas Apple had seen “vital enchancment” by late October in these Southeast Asian amenities, the chip scarcity has persevered and is now affecting “most of our merchandise,” Prepare dinner stated.

“We’re doing every thing we will do to get extra (chips) and in addition every thing we will do operationally to verify we’re transferring simply as quick as doable,” Prepare dinner stated.

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Shares of the Cupertino, California-based firm, which had risen almost 15% this 12 months, slumped 5% in prolonged buying and selling on Thursday.

Prepare dinner stated the corporate expects year-over-growth for its quarter ending in December. Analysts count on development of seven.4% to $119.7 billion.

“We’re projecting very stable demand development 12 months over 12 months. However we’re additionally predicting that we’re going to be in need of demand by bigger than $6 billion,” Prepare dinner stated.

Apple’s outcomes had been blended in a fiscal fourth quarter seen as a lull earlier than the high-sales vacation finish of 12 months.


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Apple stated revenues and income for the fiscal fourth quarter had been $83.4 billion and $1.24 per share, in contrast with analyst estimates of $84.8 billion and $1.24 per share, in line with IBES knowledge from Refinitiv.

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The outcomes had been a rocky finish to a fiscal 12 months of above-expectations gross sales led by its iPhone 12 fashions and powerful gross sales of Mac computer systems and iPads for working and studying from house in the course of the COVID-19 pandemic.

Apple informed buyers in July that chip constraints would begin to hit its iPhone and iPad lineups for the primary time within the fourth quarter.

Apple posted its outcomes shortly after retailer Amazon.com forecast holiday-quarter gross sales nicely under Wall Avenue expectations, citing labor provide shortages and world provide chain points partly.

Misses

Apple missed expectations in two key classes. Apple stated fourth-quarter iPhone gross sales had been $38.9 billion, in need of estimates of $41.5 billion, in line with Refinitiv knowledge.

Prepare dinner stated that chips made with older expertise stay the important thing provide constraint. He stated that Apple stays uncertain whether or not the shortages will ease after the vacation procuring season.


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Apple takes goal at privateness issues with rivals Fb, Google, says it’s discontinuing itunes


Apple takes goal at privateness issues with rivals Fb, Google, says it’s discontinuing itunes – Jun 3, 2019

“Most of what we design are modern (chip manufacturing) nodes, however the entire merchandise have some legacy node elements in them as nicely. And in order that (scarcity) continues into (fiscal) Q1, and we’ll see what it seems to be like past that. It’s very tough to name,” Prepare dinner informed Reuters.

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The corporate’s equipment phase, which incorporates fast-growing classes like its AirPods wi-fi headphones, got here in at $8.8 billion, half a billion {dollars} decrease than analyst expectations of $9.3 billion, in line with Refinitiv knowledge.

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Different segments fared higher. Gross sales for iPads and Macs had been $8.3 billion and $9.2 billion, in contrast with analyst estimates of $7.2 billion and $9.2 billion, in line with Refinitiv knowledge.

The corporate’s companies phase – which incorporates its App Retailer enterprise – had gross sales of $18.3 billion in income, up 26%, in contrast with analyst expectations of $17.6 billion. Prepare dinner informed Reuters that Apple now has 745 million paid subscribers to its platform, up from the 700 million it disclosed 1 / 4 in the past.

One other vivid spot within the firm’s outcomes had been its gross sales in China, which had been up 83% to $14.6 billion.

The corporate stated it returned $24 billion to shareholders in the course of the quarter.




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