Apple warns supply constraints will impact iPhone and iPad in September quarter
Applewarned about supply constraints for the next quarter which will primarily affect iPhone and iPad.
- This could lead to a lower revenue growth for the September quarter.
- Apple is expected to launch new iPhone 13 models in September.
AdvertisementApple posted $81.4 billion in revenue for the third quarter between April and June. Its Q3 earnings saw a 36% growth with a profit of $21.74 billion as the iPhone maker beat all expectations. The iPhone 12 series helped set a quarter record of $39.6 billion which is a 50% year-over-year increase for iPhone revenue. Apple also reached a new all-time high for its active installed base of iPhones.
For the upcoming quarter Apple expects a lower revenue growth with one reason being supply constraints. “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,” Apple CFO Luca Maestri said during the earnings call. With many countries still engulfed in Covid-19 the industry in general from gaming to automotive is facing a global chip shortage. This is predicted to restrict growth in the smartphone market, and also lead to growing prices for smartphones.
Apple still expects a “strong double digit year-over-year revenue growth” for the fourth quarter July, August, and September. Apple also highlighted how it had warned last quarter about supply constraints for the iPad and Mac between $3 billion and $4 billion. It however managed to mitigate some of those constraints, and ended at a number slightly towards the lower-range of that prediction. Apple did not specify but warned that this number will be higher for the September quarter.
When asked about the supply constraints possibly continuing to December, Apple CEO Tim Cook declined to answer. “We're going to take it sort of one quarter at a time. And as you would guess we'll do everything we can to mitigate whatever set of circumstances were dealt,” Cook assured.
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Apple is expected to launch a new iPhone series in September. This would presumably be the iPhone 13 series featuring at least four iPhone models.
Surging iPhone sales help Apple overcome global supply chain shortages
Apple could finally bring the always-on display feature on the iPhone 13
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