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Apple's revenue for the fourth fiscal quarter of 2021 came in under expectations, which Apple CEO Tim Cook said was caused by supply constraints on iPhones, iPads, and Macs.

iphone-13-and-iphone-13-pro-max.jpg

In an interview with CNBC, Cook said the supply issues cost Apple around $6 billion.
"We had a very strong performance despite larger than expected supply constraints, which we estimate to be around $6 billion," Cook told CNBC's Josh Lipton. "The supply constraints were driven by the industry wide chip shortages that have been talked about a lot, and COVID-related manufacturing disruptions in Southeast Asia."
For the last several months of the year, Apple has experienced long lead times on multiple products, including Macs and iPads. With the iPhone 13 launch, available models sold out quickly and Apple has been unable to keep up with demand, and the same goes for the Apple Watch Series 7.

Going forward, Cook said that he expects "solid year-over-year revenue growth" in the December quarter, but Apple will to continue facing supply problems. COVID related manufacturing problems have "improved greatly," but Cook says that chip shortages "linger on." According to Cook, older chips are the ones that are in short supply rather than newer A and M-series chips used in newer Apple devices.

Cook said that Apple primarily buys leading-edge nodes and is not having issues with those, but on legacy codes, there is competition from many different companies on supply. He said that he isn't sure when supply will improve as it is difficult to forecast when things will balance. Apple's operational team is working to cut down on cycle ties and improve yields to remedy the situation.

During the quarterly earnings call, Apple CFO Luca Maestri confirmed that the impact of supply constraints will be greater in the December quarter. iPad sales will drop year over year due to the supply constraints, but Apple expects revenue in all other categories will grow.

Article Link: Supply Constraints Cost Apple $6 Billion in Q4 2021
 
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CWallace

macrumors G4
Aug 17, 2007
10,901
8,720
Seattle, WA
Come on! Almost everything has been in stock during the last quarter, no shortages for consumers. Don't blame supply issues

I had to wait a month for my iPhone 13 Pro Max because of the Apple Card screw-up and we have seen multi-week delays for the Apple Watch 7, as well.

And now we have multi-week delays for the new MacBook Pros hours after launch.
 
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ppetrovic

macrumors member
Oct 31, 2016
52
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Belgrade, Serbia
Listening to today's earnings call, I'm so, so happy I managed to snatch a 1 TB Pro Max and 45mm Series 7 on their respective launch dates, and I'm going to give my new gadgets extra care since I can't just buy another one if it breaks.

And I'll wait for AAPL price to drop some more before I get me some more AAPL stock, because why not, Black Friday is just around the corner and there won't be much else to buy anyway.
 

thadoggfather

Suspended
Oct 1, 2007
15,059
15,264
I think demand for iPhone 13 is decent, but the 13 Pro and Pro Max are never in stock and I dont think its cause of overwhelming demand.
 

supercoolmanchu

macrumors 6502
Mar 5, 2012
355
623
Hollywood
Yeh, sure. I’m the event of low demand for notchful iPhone, hit the “PANDEMIC” or “CHIP SHORTAGE” button.
Its a timely and convenient excuse, if Apple is seeing weak demand. Its also a way to push demand "get 'em while they're hot!"

But Apple used their influence and pushed for these shutdowns, distancing and general fear segregation. Outside of Hollywood, they were one of the first big corporations to drive that agenda. So whatever problems they are having now, they 100% own.

Also with inflation going up everywhere, waiting another year on upgrading iPhones and saving several hundred dollars is not a stupid move for most.

I think even for the professional market, Apple Silicon looks nice, but there will be bugs and incompatitibilites, and when $ is getting tighter, so is the general willingness to dabble. I think many business customers might also sit this cycle out.
 

mschmalenbach

macrumors regular
Jul 22, 2008
181
108
The same $6 billion will be added to Q1 as supply constraints cover those orders.
I suspect That won’t make up the shortfall in the next quarter though as demand is still outstripping supply and growing faster than the industry’s ability to bring additional capacity on stream. For Apple their issue won’t be latest process nodes but the older nodes for more mundane functionality- probably hitting laptops more than iPads & iPhones for example… power and thermal management devices being the ones that first spring to mind.
 

mschmalenbach

macrumors regular
Jul 22, 2008
181
108
Its a timely and convenient excuse, if Apple is seeing weak demand. Its also a way to push demand "get 'em while they're hot!"

But Apple used their influence and pushed for these shutdowns, distancing and general fear segregation. Outside of Hollywood, they were one of the first big corporations to drive that agenda. So whatever problems they are having now, they 100% own.

Also with inflation going up everywhere, waiting another year on upgrading iPhones and saving several hundred dollars is not a stupid move for most.

I think even for the professional market, Apple Silicon looks nice, but there will be bugs and incompatitibilites, and when $ is getting tighter, so is the general willingness to dabble. I think many business customers might also sit this cycle out.
Perhaps.

As powerful as Apple is, it only needs one of their suppliers to not give in to hardball tactics on pricing and future orders to derail the ideal plans of their procurement teams. Given that demand looks set to outstrip supply well in to 2022 and even into 2023 if the reports of all the main foundries already being fully booked through 2023 are true, a customer pushing & threatening future orders may find themselves being looked at less favourably, not more… just because a big player like Apple or Samsung are big doesn’t mean it’s always worth doing business with them.

I’m not suggesting either of those 2 companies operate this way, I reference them only because they’re well known in their market spaces and for their size. You may think otherwise. I couldn’t possibly comment.
 

Marshall73

macrumors 68030
Apr 20, 2015
2,504
2,540
Just wait for it to kick off in Taiwan, of course, chip delays will be the least of our issues then.
 

bobtem

Suspended
Jun 5, 2017
430
539
Lost profit means lower stock value, so for those of counting on AAPL for retirement, let’s hope supply chain gets flowing again.
 

svish

macrumors 603
Nov 25, 2017
5,341
11,405
With chip shortages, all are hit badly. But overall sales of Apple devices are up, and this is good for apple. With the newly launched MacBook Pros, apple will be making a lot of money in the next quarter
 

supercoolmanchu

macrumors 6502
Mar 5, 2012
355
623
Hollywood
Perhaps.

As powerful as Apple is, it only needs one of their suppliers to not give in to hardball tactics on pricing and future orders to derail the ideal plans of their procurement teams. Given that demand looks set to outstrip supply well in to 2022 and even into 2023 if the reports of all the main foundries already being fully booked through 2023 are true, a customer pushing & threatening future orders may find themselves being looked at less favourably, not more… just because a big player like Apple or Samsung are big doesn’t mean it’s always worth doing business with them.

I’m not suggesting either of those 2 companies operate this way, I reference them only because they’re well known in their market spaces and for their size. You may think otherwise. I couldn’t possibly comment.
I’d assume Apple has alternative for some suppliers, but there’s definitely a list of their requirements with only one source.

The major problem is the ports home and abroad, ports that Apple helped encourage closing. They panicked hard and pushed a contact tracing segregation scheme in a very high profile media blitz. Those ports are closed thanks to a mentality that Apple and Google partnered to help create. Shot themselves in the foot, and worse, they spearheaded creating a worldwide problem for everyone.

Apple has also pushed an insane and 100% wasteful and destructive energy hysteria, which has created totally artificial issues for the energy supply chain. Cook’s foreign sources all require energy to produce for Apple. That’s a problem that Apple’s silly solar panels and wishful thinking aren’t going to solve.

Apple can try to spend their way out of it, but that won’t work for all their suppliers. Even Apple’s cash is finite, and with rising inflation, it’s worth less everyday. And they can’t afford to pay for or solve everyone’s energy supplier issues (though they certainly helped market the causes of those problems).

Apple’s silicon is impressive, and it’s been a long dream of Apple fans to finally have serious CPU contenders for the platform, but unfortunately for the timing, there’s a deep stink settling in on the brand that’s never going to wash off.

As Apple is burning enthusiasm faster than they can create it, there’s never been a better time for upstart competitors/platforms. They are looking like a big lumbering Spanish Galleon full of gold and resources, ready for the taking.
 
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