Apple Expects Supply Constraints to Continue in Q3 2022
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.
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.
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Top Rated Comments
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?
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.
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...