Apple Expects Supply Constraints to Continue in Q3 2022

[citysnaps]

I will never understand how people on a site dedicated to Apple never seem to have anything nice to say about anything the company does. We. Are. Still. Coming. Out. Of. A. Pandemic. The world has supply chain issues. How about we celebrate in their success for like a moment? Anyone? ?‍♂️

Stop it with that jibber-jabber. You'll not earn any forum cred with that kind of crazy talk.

Best to to go with "TC needs to be fired" or other approved crowd pleaser.


Seriously... it's because a lot of people can only feel good about themselves tearing another person/company/etc down. That provides a little blip of feel-good power that's otherwise lacking in their lives.

 

[chucker23n1]

During the pandemic, people lost their jobs, people not being able to work due to lock downs thus not able to be paid, deliveries not taking place and your trying to tell me a mass load of people suddenly went out and purchased Apple products!!!?? Nope, do not believe it. I want to see independant proof before I accept what your trying to say.

Proof of what?

We have third-party analysts who approximate how much Apple sold. We also have an industry-wide problem of supply constraints.

Your conspiracy theory makes little sense. What Apple is telling shareholders is a problem. Why would they tell them something negative that isn't even true?

 

[Abazigal]

No need to be rude!!!

During the pandemic, people lost their jobs, people not being able to work due to lock downs thus not able to be paid, deliveries not taking place and your trying to tell me a mass load of people suddenly went out and purchased Apple products!!!?? Nope, do not believe it. I want to see independant proof before I accept what your trying to say.

My observation is that not everybody was equally impacted by the pandemic.

For example, the move to home-based learning would have created a sudden surge in demand for laptops and tablets as parents needed to ensure that their children each had a computing device to handle multiple online lessons at the same time.

Likewise, the move to remote work meant a demand for PCs as well. Some people are fortunate enough that they are still able to work even when away from the office and remained gainfully employed. Which meant a stable salary and disposable income to spend on Apple products, which are actually pretty competitively priced compared to the competition.

I understand that during this time, the US government also gave everyone an extra $600 (which was meant to be financial assistance, but again, not everyone who received the money needed it, and so opted to spend it on "luxuries" such as Apple products).

This should come as absolutely no surprise to anyone who has been following the news since the pandemic first hit in early 2020. Apple has been consistently doing better and more people have been buying their products and delving deeper into their ecosystem. Were you expecting people to just stop buying iPhones overnight?

 

[chucker23n1]

For example, the move to home-based learning would have created a sudden surge in demand for laptops and tablets as parents needed to ensure that their children each had a computing device to handle multiple online lessons at the same time.

Likewise, the move to remote work meant a demand for PCs as well.

Yup.

Then, on top of that, a chip supply crisis started. The reasons for that seem more complex than just the pandemic, but the end result is the same nonetheless: more demand, yet also less supply, and at least the latter part of those two is continuing on to this day.

This isn't limited to Apple. It isn't even limited to computers. Car manufacturers, for example, have taken to leaving out entertainment features and installing them after the fact because they simply don't have the parts.

 

[svish]

Looks like delivery timeframe is not going to decrease any time soon. For those eagerly waiting, long wait after ordering might continue for some more time!

 

[danniexi]

Isn't there a popular saying in the stock market regarding having a diversified portfolio is a safe way to invest?

I don't understand why it took a pandemic for Apple to think about diversifying its supply chain...if they had a diversified their supply chain, they wouldn't be thinking about losing 4-8B next quarter...insane...

1. 4-8Billion for a quarter is not that big of a deal for Apple. Yes it hurts, but it’s not a death blow.
2. How are they going to diversify their supply chain? Move manufacturing to the US? LMAOOOOOOOOOOOO

 

[Chevysales]

About that “is M1 outdated thread”… NO and for much longer than you’d expect too.

 

[Arnold Ziffel]

It’s beyond time to call out the Chinese government for its draconian lockdown measures.

It is they who are causing the disruptions, not the virus.

 

[Chevysales]

Yea but they also caused the virus. They played around and it leaked from lab. I believe that.

 

[Chevysales]

Yup.

Then, on top of that, a chip supply crisis started. The reasons for that seem more complex than just the pandemic, but the end result is the same nonetheless: more demand, yet also less supply, and at least the latter part of those two is continuing on to this day.

This isn't limited to Apple. It isn't even limited to computers. Car manufacturers, for example, have taken to leaving out entertainment features and installing them after the fact because they simply don't have the parts.

Corvettes have been shipping with out many of the adds that buyers want because GM has no chips to build them with. Same for many in the GM line. No way is this effecting Apple anymore than others. We just see/hear it more because here we are. But look at any dealers lot and see the lack of product. And how that product is equipped. No one is immune to this as it’s industry wide.

We usually have a 60-90 supply on the ground at any given time… hasn’t come close to that in 2 years. Used cars 40% markup and new have sold over MSRP/STICKER for a long time.

That’s just car industry. If everything went back to normal today. I mean the flow of components it will still take about 16 plus months to come close to fall of 2019.
This is going to be painful for many industries.

 

[sudo-sandwich]

I don’t agree with this. The market and analysts have a consistent track record in misinterpreting data from unreliable sources in order to attain their predictions. They traditionally set hugely inflated financial expectations which when apple were unable to meet led to the stock dropping. To the point where apple were constantly advised and finally decided to stop providing future revenue expectations for which analysts could then abuse. The market pricing in valuation is based on hot air as opposed to firm facts which is why it’s completely nonsensical the majority of the time.

AAPL would always be going down if this were the case. If you're saying it just always goes down after earnings reports, half the time that's not what happens, and last time it went up IIRC.

 

[Freeangel1]

Inflation is a real killer too...

A key inflation gauge jumped 6.6% in March, most since 1982

An inflation gauge closely tracked by the Federal Reserve surged 6.6% in March compared with a year ago, the highest 12-month jump in four decades and further evidence that spiking prices are pressuring household budgets and the health of the economy. Excluding the especially volatile food and...

www.yahoo.com

 

[triton100]

AAPL would always be going down if this were the case. If you're saying it just always goes down after earnings reports, half the time that's not what happens, and last time it went up IIRC.

Yes this is what happens during earnings reports and it happens the majority of times, so I’m not sure where you’re sourcing your your intel from.

 

[sudo-sandwich]

Yes this is what happens during earnings reports and it happens the majority of times, so I’m not sure where you’re sourcing your your intel from.

AAPL has been on my watch list since 2008, so that was from memory. But from

Apple Earnings Date | AAPL Earnings Report - TipRanks

Find Apple earnings date updates and upcoming Apple earnings report Aug 02, 2022 as well as EPS Forecast and AAPL top analyst price target consensus for Apple

www.tipranks.com

, past few years it was even. Down 6 times, up 6 (this screenshot doesn't show the latest report, which it opened higher after), and the ups were bigger.

 

[sudo-sandwich]

No need to be rude!!!

During the pandemic, people lost their jobs, people not being able to work due to lock downs thus not able to be paid, deliveries not taking place and your trying to tell me a mass load of people suddenly went out and purchased Apple products!!!?? Nope, do not believe it. I want to see independant proof before I accept what your trying to say.

That's not what he's saying, but yeah, some people did spend stimulus checks on iPhones. Anyone who kept a remote job did ok. Even if broke, didn't have to worry about rent in places it was frozen.

 

[triton100]

AAPL has been on my watch list since 2008, so that was from memory. But from

Apple Earnings Date | AAPL Earnings Report - TipRanks

Find Apple earnings date updates and upcoming Apple earnings report Aug 02, 2022 as well as EPS Forecast and AAPL top analyst price target consensus for Apple

www.tipranks.com

, past few years it was even. Down 6 times, up 6 (this screenshot doesn't show the latest report, which it opened higher after), and the ups were

AAPL has been on my watch list since 2008, so that was from memory. But from

Apple Earnings Date | AAPL Earnings Report - TipRanks

Find Apple earnings date updates and upcoming Apple earnings report Aug 02, 2022 as well as EPS Forecast and AAPL top analyst price target consensus for Apple

www.tipranks.com

, past few years it was even. Down 6 times, up 6 (this screenshot doesn't show the latest report, which it opened higher after), and the ups were bigger.
View attachment 1998613

I’m pretty certain that if you take a wider snapshot the downs will be more prominent but if I’m wrong then I stand corrected.

 

[sudo-sandwich]

I’m pretty certain that if you take a wider snapshot the downs will be more prominent but if I’m wrong then I stand corrected.

I tried, but the site doesn't show me more than those rows. Could go plot AAPL price with lines at all past earnings reports if I had the setup for that.

 

[turbineseaplane]

I would cry... I just hope there's enough. I don't care about 2023 since it wouldn't be a big upgrade only the zoom lens. Tho 2024 iPhone is supposed to have zero notches/pill cuts. 100% display face ID underneath.

You would cry? (you are joking, right?)
They sell tech gadgets.

This isn't life altering stuff if we don't get "the latest thing" on time.

 

[44267547]

About that “is M1 outdated thread”… NO and for much longer than you’d expect too.

Threads on the internet shouldn’t be taken seriously or indicative of how a product survives and/or how Apple performs. You should know that.

The reality is, the M1 is way ahead of its time and in a class of its own, and we’re not even to the M2 yet.

Oh, and I purchased a few shares today. Life is good and AAPL delivers.

 

[Solomani]

What people don't understand is that China is making more iPhones than ever. The demand is just too great.

Everything is made in China. Except babies.... they're made in.....

 

[Chevysales]

Threads on the internet shouldn’t be taken seriously or indicative of how a product survives and/or how Apple performs. You should know that.

The reality is, the M1 is way ahead of its time and in a class of its own, and we’re not even to the M2 yet.

Oh, and I purchased a few shares today. Life is good and AAPL delivers.

I guess I should have used a sarcasm tag?

 

[DeepIn2U]

Nice insight! Dang, you are intelligent ??‍? My question to you is...

Will you be upgrading and getting the new iPhone 14 with me this September? ??‍♀️

Some iPhone porn to hold you over until fall.

 

[Jcxa]

So what is Apple doing to mitigate future supply issues? They have had at least a year to come up with a plan. They are already projecting that supply issues will continue for at least another year. As far as I can see, Apple is doing nothing, moreover, they intend to stick with China regardless of logic or loss of sales. As long as demand is overwhelming, Apple will continue to do nothing since they figure they will make a sale sooner or later.

 

[Abazigal]

So what is Apple doing to mitigate future supply issues? They have had at least a year to come up with a plan. They are already projecting that supply issues will continue for at least another year. As far as I can see, Apple is doing nothing, moreover, they intend to stick with China regardless of logic or loss of sales. As long as demand is overwhelming, Apple will continue to do nothing since they figure they will make a sale sooner or later.

I will say just ride it out.

China is not going to be in lockdown for the next 10 years and there is little merit in over-reacting to a short-term issue.

Let’s not lose perspective of the bigger picture. We are talking about near-term issues impacting the current (April to June) quarter. Taking a look at longer-term trends, not much has changed from a few months ago. Apple looks set to report another stellar quarter.