Apple just reported a monster earnings release for the third fiscal quarter of 2021, with $81.43 billion in revenue, up 36 percent year over year, and profit of $21.74 billion. Looking ahead to Q4 2021, however, Apple cautioned that supply constraints are likely to impact the iPhone and iPad in particular…
During Apple’s earnings call with analysts today, CEO Tim Cook and CFO Luca Maestri addressed supply constraints that could impact Apple during Q4 2021. In particular, these supply constraints are likely to hit the iPhone and iPad.
“We expect supply constraints during the September quarter to be greater than what we experienced during the June quarter. The constraints will primarily impact iPhone and iPad,” Maestri said on the call.
Despite the supply constraints, Apple said it still expects “very strong double digit growth” during the quarter, but the growth rate is expected to be lower than the 36% growth Apple saw from Q3 2020 versus Q3 2021.
Apple’s fiscal Q4 covers the months of July, August, and September. Notably, Apple is expected to announce new iPhone 13 models in September.
Notably, this is not the first time Apple has warned against supply constraints. Last quarter, the company said that iPad and Mac constraints could cost the company somewhere to the tune of $3 billion to $4 billion in revenue. Maestri said today that the impact ended up being towards the lower-end of that range, but that the situation will worsen in Q4.
During today’s call, Cook also noted that component costs in aggregate are decreasing, but Apple is still paying more for fright than it would like. Cook said that Apple is taking the supply situation one quarter at a time and that the company will do “everything we can to mitigate” the situation.
Author: Chance Miller
Source: 9TO5Google
