Apple Expects Supply Constraints to Continue in Q3 2022 - MacRumors
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Apple Expects Supply Constraints to Continue in Q3 2022

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Apple is expecting ongoing supply issues to continue to impact product sales in the third quarter of 2022. In the second quarter, Apple had some difficulty meeting demand for the iPhone, iPad, and Mac due to supply constraints, and that is going to get worse in Q3 2022.

iphone 13 pro max display bleen
Apple CFO Luca Maestri said that Covid disruptions in China and silicon shortages are making it difficult to make enough product to satisfy customer demand.

The supply constraints will cost Apple $4 to $8 billion depending on how long it takes suppliers in China to get back up and running. According to Apple CEO Tim Cook, the supply issues are all centered on the Shanghai corridor, and while almost all factories are now reopened, it will take some time for them to ramp back up to standard output levels.

As of now, the supply issues have primarily affected iPads and the higher-end MacBook Pro models. Cook says that going forward, most product categories will be impacted, and this will ultimately affect Apple's June quarter revenue.

Tag: Earnings

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Top Rated Comments

B
BootsWalking
57 months ago
It's mine-blowing Apple could post the amazing revenue and profit numbers they did today and still could have sold even more product if it weren't for the supply chain issues.
Score: 8 Votes (Like | Disagree)
a1s0t3n0 Avatar
a1s0t3n0
57 months ago
I will never understand how people on a site dedicated to Apple never seem to have anything nice to say about anything the company does. We. Are. Still. Coming. Out. Of. A. Pandemic. The world has supply chain issues. How about we celebrate in their success for like a moment? Anyone? 🤦‍♂️
Score: 7 Votes (Like | Disagree)
chucker23n1 Avatar
chucker23n1
57 months ago

For example, the move to home-based learning would have created a sudden surge in demand for laptops and tablets as parents needed to ensure that their children each had a computing device to handle multiple online lessons at the same time.

Likewise, the move to remote work meant a demand for PCs as well.
Yup.

Then, on top of that, a chip supply crisis started. The reasons for that seem more complex than just the pandemic, but the end result is the same nonetheless: more demand, yet also less supply, and at least the latter part of those two is continuing on to this day.

This isn't limited to Apple. It isn't even limited to computers. Car manufacturers, for example, have taken to leaving out entertainment features and installing them after the fact because they simply don't have the parts.
Score: 5 Votes (Like | Disagree)
chucker23n1 Avatar
chucker23n1
57 months ago

During the pandemic, people lost their jobs, people not being able to work due to lock downs thus not able to be paid, deliveries not taking place and your trying to tell me a mass load of people suddenly went out and purchased Apple products!!!?? Nope, do not believe it. I want to see independant proof before I accept what your trying to say.
Proof of what?

We have third-party analysts who approximate how much Apple sold. We also have an industry-wide problem of supply constraints.

Your conspiracy theory makes little sense. What Apple is telling shareholders is a problem. Why would they tell them something negative that isn't even true?
Score: 5 Votes (Like | Disagree)
TheYayAreaLiving 🎗️ Avatar
TheYayAreaLiving 🎗️
57 months ago
I hope supply constraints wont be an issue in Q4. In Q4, Apple should be expecting a mega-cycle for the new iPhone 14 and Apple Watch 8.
Score: 5 Votes (Like | Disagree)
anshuvorty Avatar
anshuvorty
57 months ago
Isn't there a popular saying in the stock market regarding having a diversified portfolio is a safe way to invest?

I don't understand why it took a pandemic for Apple to think about diversifying its supply chain...if they had a diversified their supply chain, they wouldn't be thinking about losing 4-8B next quarter...insane...
Score: 4 Votes (Like | Disagree)
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