Apple suffers from global chip shortageEuropost
Apple announced that the global semiconductor chip shortage has weighed down on its revenues from sales of Macs and iPads and is further expected to slow the production of iPhones. Executives of the conglomerate confirmed that revenue for the current fiscal fourth quarter will grow but would still be below the 36.4% rate in the previous quarter. Growth will also slow in Apple's closely watched services business, Reuters elaborated.
In a conference call with investors, Apple executives also noted that the impact of the chip shortage was less severe than feared. Shares of Apple, whose valuation has more than doubled in about three years to nearly $2.5 trillion slumped 1.7% in the beginning of this week to $144.24 after the call.
Apple also reported third-quarter sales and profits that beat analyst expectations as consumers bought premium versions of its 5G iPhones and signed up for its subscription services. China sales grew 58% to $14.76 billion in the quarter, which ended 26 June. Driven by the better-than-expected iPhone sales, total revenue hit $81.43 billion, above analyst expectations of $73.30 billion, according to IBES data from Refinitiv. During the investor call, Chief Executive Tim Cook said that chips affected by the shortages are made with older technology but are still needed as supporting parts to make the company's flagship device, the iPhone. "We do have some shortages," Cook said, "where the demand has been so great and so beyond our own expectation that it's difficult to get the entire set of parts within the lead times that we try to get those."