Apple said on Tuesday that global chip shortages affecting its Mac and iPad sales capacity will begin to affect iPhone production, and it expects slower revenue growth to cause its stock price to fall. Double digits, but lower than the 36.4% growth rate in the just-concluded third quarter.
They said that the growth of the service business that Apple is paying close attention to will also slow down. In a conference call with investors, Apple executives also said that although the impact of the chip shortage is not as severe as previously reported. Worry about the fourth deterioration in the third quarter, which extends to iPhone production.
Apple’s stock price more than doubled in about three years to nearly 2.5 trillion U.S. dollars (approximately 1.8589882 billion rupees), and initially fell 1.7% to 144.24 U.S. dollars (approximately 10,725 rupees). As consumers purchased the premium version of its 5G iPhone and subscribed to its subscription service, the company’s reported third-quarter sales and earnings exceeded analyst expectations.
In the quarter ended June 26, China’s sales increased by 58% to US$14.76 billion (approximately Rs 10975.4 billion). According to Refinitiv’s IBES data, driven by better-than-expected iPhone sales, total revenue reached 81.43 billion U.S. dollars (approximately INR), higher than analysts’ expectations of 73.3 billion U.S. dollars (approximately 5.45,085 INR).
According to Refinitiv’s data, Apple’s earnings were 21.74 billion U.S. dollars (about 161,666 crores), or 1.30 U.S. dollars per share (about 97 rupees), which was higher than the expected value of 1.01 U.S. dollars per share (about 75 rupees). CEO Tim Cook said that the chips affected by the shortage were made using older technology, but still need to be used as a spare part for the company’s flagship device, the iPhone.
Its scale is so large that it exceeds our own expectations that it is difficult to obtain a full set of parts within the delivery time we strive for. “Cook refused to predict whether the shortage will continue into Apple’s first fiscal quarter. Angelo Zino, an analyst at the research firm CFRA, said that Apple may be stockpiling chips for its next-generation mobile phones, which will damage the current Model number.
“Apple will want as many chips as possible. “Zino said. “But if you combine it with the existing supply restrictions, it may be more difficult for Apple to meet demand this year,” Apple told investors last quarter that a shortage of chips could bring sales to US$3 billion (approximately Rs 22,309 crore). ). ) To USD 4 billion (approximately 297.48 billion rupees). Cook told Reuters in an interview with Reuters on Tuesday that the impact on total revenue for the third quarter was “below the lower end of its previous forecast range.”
The biggest sales growth came from China, and Cook told Reuters that customers are buying accessories such as Apple Watch to pair with the iPhone. “This is not just the iPhone. We have set a new quarterly record for Macs, handheld devices, homes and accessories, and services in China,” Cook said. “This is our strongest geographic environment.” The 5G upgrade seems to drive a better iPhone purchase cycle than many analysts expected.
Apple said that iPhone sales were 39.57 billion U.S. dollars (approximately 2,952.95 billion rupees), an increase of nearly 50% over the previous year, and higher than analysts’ expectations of 34 billion U.S. dollars (approximately 2,528.85 billion rupees). Cook told Reuters that Apple’s iPhone 12 Pro and iPhone 12 Pro Max are high-end products of the device with strong sales.
According to Refinitiv, this helped increase the gross profit margin to 43.3%, higher than the expected 41.9%. He said on the conference call that the adoption of 5G in many countries/regions around the world is in the early rollout stage. Some analysts wonder whether this means that the iPhone 5G sales boom will not last: consumers can buy phones in advance and keep them until the service is launched.
Other analysts believe that this means that Apple can continue to enjoy prosperity. “The low penetration rate of 5G reminds people that the best time for the company’s 5G iPhone has not yet arrived,” said D.A. analyst Tom Forte. Another major driver of Davidson & Co. Apple’s performance is its service business, including paid subscriptions for TV and music, and its App Store.
Service revenue reached a record of 17.49 billion U.S. dollars (approximately 1300.73 billion rupees), an increase of one-third over the previous year, and higher than analysts’ expectations of 16.33 billion U.S. dollars (approximately 1214.46 billion rupees). Cook told Reuters that Apple now has 700 million users on its platforms, up from 660 million in the previous quarter.
However, Chief Financial Officer Luca Maestri told investors that the growth of the service industry will slow down. The level we saw in June,” he said on the phone. Cook said that Apple set quarterly sales records on many of its services, including its AppleCare hardware insurance plan, which was released during the pandemic.
At that time, many iPad and Mac sales were 7.37 billion U.S. dollars (approximately Rs 54,812 crore) and 8.24 billion U.S. dollars (approximately Rs 61,288 crore), while analysts expected 7.15 billion U.S. dollars (approximately Rs 53,181 crore) And US$8.07 billion (approximately Rs. 60,000 crores), according to data from Refinitiv.