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Apple stocks fall after the firm warns of an $8 billion damage from supply limitations.
Published Updated Fri, May 13 02:18
Mac’s revenue increased by about 9% year on year in the March quarter, the corporation reported on Thursday. This demonstrated a steady growth and alleviated financial backer concerns about a deteriorating macroeconomic environment impacting enthusiasm for top-of-the-line cell phones and PCs.
However, Apple shares plummeted over 4% in extended trading as Apple CFO Luca Maestri warned of a few issues in the current quarter, including supply limitations related to Covid-19, which may affect transactions by $4 billion to $8 billion. The IT titan also warned that lockdowns were diminishing interest in China.
Apple CEO Tim Cook stated that the company was “not resistant” to inventory network issues. Apple did not release a forecast for the current quarter. The company has not provided official revenue guidance since February 2020, citing the vulnerability associated with the epidemic.
Furthermore, Apple announced that its board of directors approved $90 billion in share buybacks, maintaining pace with the public organization’s spending on its own shares. According to S&P Dow Jones Indices, it spent $88.3 billion on buybacks in 2021.
Apple increased their earnings per offer by 5% to 23 cents. The cell phone business increased by more than 5% during the quarter, providing fresh evidence that the current iPhone 13 model is selling well. Cook stated that the iPhone company had a profitable quarter, with sales to purported switchers or those who previously had an Android phone but opted to acquire an iPhone.
Total iPhone sales increased by 5.5%, accounting for $50.6 billion, or 52% of total revenue, demonstrating that the 5G super cycle of improvements that started in late 2020 with the iPhone 12 persists. Mac revenue increased 15% to $10.4 billion. Wearables revenue, including the Watch and Air Pods, grew 12% to $8.8 billion. The iPad’s sales were unimpressive, with revenues falling 2% to $7.7 billion. Maestri highlighted silicon supply chain limitations.
What do you think about how Apple will face this supply chain crisis and how their stocks will rise?
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