Apple lost $6 billion to chip shortages, expects bigger losses this quarter
In an earnings call late on Thursday, Apple CEO Tim Cook said that the primary cause of supply-chain-related shortages will be the chip shortage in the ongoing quarter.
"By the time we finish this quarter, the constraints will be larger than the $6 billion that we experienced in Q4 (July-September period)," he told the analysts.
Apple faced about a $6-billion hit in the supply constraints and it affected the iPhone, the iPad and the Mac devices in its Q4 earnings.
"There were two causes for this in Q4. One was the chip shortages that you've heard a lot about from many different companies throughout the industry. And the second was Covid-related manufacturing disruptions in Southeast Asia," Cook informed.
The Covid disruptions have improved materially across October to where we currently are, Cook said.
"So for this quarter, we think that the primary cause of supply-chain-related shortages will be the chip shortage. It will affect, it is affecting, I should say, pretty much most of our products currently. But from a demand point of view, demand is very robust," the Apple CEO mentioned.
The chip shortage is happening on legacy nodes.
"Primarily, we buy leading edge nodes, and we're not having issues on leading edge nodes. But on legacy nodes, we compete with many different companies for supply and it's difficult to forecast when those things will be normal," Cook elaborated.
AdvertisementGlobal supply chain disruptions won't get better anytime soon due to chip shortage: Forrester
Intel CEO says global chip shortage will not end before 2023
Popular on BI
- A Trump spokeswoman mocked Pete Buttigieg's military service in a Memorial Day weekend spat with Ron DeSantis
- Family stands to lose nearly $6,000 in airfare and hotel costs after they were bumped from an overbooked cruise ship
- Flyers are 'skiplagging' to try and save money on flight tickets. Airlines hate it.
- These are must to do activities in Shimla on your next visit
- ONGC to invest ₹1 lakh cr in energy transition, targets net-zero by 2038
- List of famous things to buy in Shimla
- With Rupay Credit Card on UPI, mobile payments pioneer Paytm deepens its leadership in UPI
- Screen-sharing and usernames on WhatsApp soon: All you need to know