Apple’s iPhone streak will be run in global shortage of chips

Apple CEO Tim Cook attends the grand opening of the new Apple Tower Theater Retail store at the Apple Tower Theater on June 24, 2021 in Los Angeles, California.

JC Olivera | .

Apple reported an outbreak quarter on Tuesday, driven by sales of iPhone, which were up 50% per annum at $ 39.57 billion in sales.

That followed the March quarter, where there were iPhone sales up 65.5% per year and from Apple holiday quarter, where there were sales up 17% to $ 65.60 billion.

The iPhone is on a hot series led by last yearil release of the iPhone 12, which is the first significant redesign of the iPhone since 2017. Current iPhone consumers are upgrading to the first i phone with 5G and many people they’re switching from an Android phone, Apple CEO Tim Cook said on Tuesday.

But Apple now faces a problem issue that has ensnared everyone from game console from manufacturers to automotive companies to Microsoft’s PC business: An industry-wide shortage of chips and other components.

On Tuesday, Apple CEO Tim Cook warned silicon “Bid constraints” will affect iPhone and iPad sales.

Cook said the shortcomings aren’t in the high-powered processors that Apple has produced for its devices, but in so-called “legacy nodes” or chips that perform daily functions like display driving or audio decoding and can be produced using elder equipment.

“The majority of the constraints we are seeing are of the variety that I think others are seeing, which I would classify as an industry shortage, “said Apple CEO Tim Cook Cook on a call with analysts.

In case of other component shortages, attributed it to demand surpassing Apple’s predictions.

“We have some shortcomings in beyond that, that’s where the demand it was like that great and therefore beyond our expectations that it is difficult to obtain the whole set of parts within the lead times we’re trying to get those. “

Apple had already he warned that the shortage of supply would have repercussions on the company in the quarter end in June, but those shortcomings hit iPad and Mac, not Apple’s most important product. Apple had said in April supply constraints could be a drag from $ 3 to $ 4 billion on sales, but Cook said in an interview on Tuesday that Apple was in able to navigate e reduce the impact will be less than expected.

“We actually stayed in able to mitigate some of that, and we came in at the bottom of the low end of That range”Cook told CNBC’s Josh Lipton.

On Tuesday, Apple didn’t give an exact range for how the shortage of components would affect its September quarter, but CFO Luca Maestri said the company expects that “they will be greater than what we experienced during the month of June. quarter. “

Shortage of iPhones won’t condemn Apple – still expects slowdown “double-figure” growth over the $ 64.7 billion it reported in last year is September quarter. But admission shows that even Apple … with his prodigious supply chain, operations and purchasing expert CEO power with suppliers, may have trouble getting the parts it needs to satisfy demand in half a global shortage.

Apples shares it sank about 2% later hours following the earnings release, despite the outbreak quarter.

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