Cupertino’s Apple Inc lowers growth forecast, says chip shortage reaches iPhones

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Cupertino’s Apple Inc lowers growth forecast, says chip shortage reaches iPhones

Apple Inc., the Cupertino, California-headquartered iPhone manufacturer, said late on Tuesday that a global-scale semiconductor shortage which had been adding to hindrances on its ability to sell iPads and MacBook, had spread into iPhones’ assembling line, as the world’s largest taxpayer had lowered revenue growth forecast for fiscal fourth quarter of 2021.

In point of fact, following release an upbeat quarterly earnings’ report for fiscal Q3, 2021, late on Tuesday, Apple Inc executives were quoted saying that the Californian tech conglomerate would more likely to report a double-digit growth over current quarter, but the growth would remain well below of a 36.4 per cent notched in the latest quarter.

Besides, Apple Inc officials had also projected a sharp downturn in service businesses. Nevertheless, in a post-earning conference call with the investors, Apple Inc executives also had told that the iPhone maker had weathered a global-scale chip shortage much-better than anticipated in the latest quarter, but the shortage would likely to exacerbate deeper into the year.

In tandem, following a downbeat growth projection for the remainder of the year, shares’ prices of Apple Inc., market valuation of which had nearly doubled over past three years to a whopping $2.5 trillion, had closed out Wednesday’s Wall Street 0.69 per cent lower to $144.98 apiece after falling as much as 1.5 per cent in pre-market trading.

Apple Inc Q3 revenues beat estimate but chip shortages weigh

According to Apple Inc’s quarterly earnings’ report for its fiscal third quarter of 2021 that ended on June 26, the US-based China sales ramped up nearly 58 per cent to $14.76 billion in the latest quarter, while Apple’s total revenues spiked to $81.43 billion that topped an analysts’ estimate of $73.30 billion, IBES data from Refinitiv had revealed.

Concomitantly, Apple Inc’s operational profit over the latest quarter stood at $21.74 billion or $1.30 per share, well above a Wall Street estimate of $1.01 per share. Meanwhile, referring to a global-scale chip shortage, Apple Inc Chief Tim Cook said in a post-earnings call with the investors, “We do have some shortages…where the demand has been so great and so beyond our own expectation that it's difficult to get the entire set of parts within the lead times that we try to get those.