Cupertino’s Apple Inc. storms past sales, profit target, warns of chip shortage

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Cupertino’s Apple Inc. storms past sales, profit target, warns of chip shortage

Later this week, Apple Inc., the Cupertino, California-headquartered iPhone manufacturer, had beaten Wall St. estimates for quarterly sales and profits over its fiscal second quarter that ended on March 27, though the United States’ largest corporate taxpayer had raised a red flag over current quarter sales citing an over the odd chip shortage that in effect could curb out billions of dollars in sales from iPads and Mac during its fiscal third quarter of 2021.

Aside from that, the Californian tech conglomerate, which had been facing off a flurry of lawsuits over abuse of market dominance, in particular on Apple stores, alongside other privacy-related issues, had announced a jaw-dropping $90 billion in share repurchases.

Nonetheless, despite a fairly upbeat quarterly earnings’ report, shares’ prices of Apple Inc. tumbled as much as 2.45 per cent to $131.46 last week.

Apple reports upbeat quarterly earnings, but warns of steeper chip shortage ahead

In tandem, according to Apple Inc.’s quarterly earnings’ report for its fiscal second quarter of 2021 that ended on March 27, the Cupertino-based iPhone maker had reported a sales figure of $89.6 billion, well above an analysts’ estimate of $77.4 billion, while Apple’s operating profits surged to $1.40 a share compared to a profit of 99 cents per share logged at the same time a year earlier.

Besides, Apple’s iPhone 12 sales accounted for a lion’s share of its operational profit, as the Californian tech titan had recorded a whopping $47.9 billion from iPhone sales, while the sales of its iPads and Macs had yielded $7.8 billion and $9.1 billion respectively.

On top of that, while Apple CFO (Chief Financial Officer) Luca Maestri was quoted saying that the iPhone maker had buffered a global-scale chip shortage by burning its inventories over latest quarter, which in effect could lead to a sweeping shortage of chips on current quarter with potentials to cost as many as $3 to $4 billion in revenues, Apple Inc Chief Executive Tim Cook said in a post-earnings’ conference call with the reporters, “The shortfalls affect primarily the iPad and the Mac. We’ll have some challenges in there.