Apple revenue misses expectations amid chip shortage
Apple (AAPL) reported its Q4 earnings after the closing bell on Thursday, missing analyst expectations on revenue, with its iPhone, Mac, and Wearables businesses coming up short amid the ongoing chip shortage. According to Reuters, supply constraints knocked $6 billion off the company's top line in the quarter.
Here are the most important numbers from the report compared to what what Wall Street was expecting, as compiled by Bloomberg.
Revenue: $83.36 billion versus $84.68 billion expected
Earnings per share: $1.24 versus $1.24 expected
iPhone revenue: $38.87 billion versus $41.60 billion expected
Mac Revenue: $9.18 billion versus $9.30 billion expected
iPad Revenue: $8.25 billion versus $7.16 billion expected
Services revenue: $18.28 billion versus $17.57 billion expected
Wearables revenue: $8.79 billion versus $9.27 billion expected
While the company missed on analyst expectations, quarterly revenue was up 29% year-over-year. Still, the stock was down 5% following the announcement.
The big news for Apple’s Q4 will not only be how many iPhones it sold in the quarter, but the company’s commentary on the impact of the ongoing chip shortage crisis. Bloomberg reported that Apple was cutting orders for the iPhone 13 by 10 million units in early October.
The chip shortage is unlikely to let up anytime soon, with estimates pointing to improvements in mid-2022 at the earliest.
Apple’s Q4 generally provides an early look at how well the latest iPhone model is selling, since the phone traditionally launches in the middle of the quarter. The iPhone 13 is a moderate improvement over the iPhone 12 in terms of performance and design, but its cameras have been a major selling point.
Apple also launched its Apple Watch Series 7, with a larger screen and improved durability.
More recently, the company debuted its third-generation AirPods, and its new MacBook Pro 14-inch and MacBook Pro 16-inch powered by the company’s M1 Pro and M1 Max custom chips.
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