Apple Inc. (AAPL.O) announced that a global chip shortage that has hampered its ability to sell i9ts upcoming iPhone 13, Macs and iPads will begin to impair iPhone production, and that sales growth will slow, sending its stock down.
Apple isn’t the only firm dealing with supply issues; a global chip shortage has impacted almost every major company, from Tesla to Microsoft. While the situation in the car sector is expected to improve shortly, there are signs that smartphones will be next to suffer.
“We do have certain shortages,” Cook said, “where demand has been so high and so far above our expectations that it’s impossible to obtain the whole set of parts within the lead times that we try to get them.”
Apple reported a record-breaking quarter on Tuesday, with iPhone sales jumping 50% year over year to $39.57 billion. That follows a 65.5 percent increase in iPhone sales in the March quarter and a 17 percent increase in sales to $65.60 billion in the Christmas quarter. Apple’s fastest-growing market is China, where Cook told media sources that buyers are buying accessories like the Apple Watch to pair up with their iphones.
You can also check Global Smartphone shipment of Apple in Q2 2021
In terms of new products, Apple is expected to release a series of iPhone 13, all of which will look similar to the current iPhone 12 lineup. A smaller notch, an always-on display, a larger battery, and a 1TB storage option are among the rumored new features. This fall, Apple is anticipated to release new iPads, including a revamped iPad mini.
Cook refused to say if the shortages would persist into Apple’s fiscal first quarter, when the company’s greatest iPhone sales normally occur. Despite the blockbuster quarter, Apple’s stock dropped roughly 2% after hours following the earnings announcement.