Apple CEO Says It's Hard to Predict When Chip Shortages Will Ease
It’s difficult to predict when semiconductor shortages might ease, Apple CEO Tim Cook told investors Wednesday (see fiscal Q2 materials here). Forecasts are challenging because most of the chip issues are with legacy nodes, and many different companies, including from…
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other industries, are competing for supply, Cook said. Supply constraints will leave a $3 billion-$4 billion divot in fiscal Q3 revenue, said Chief Financial Officer Luca Maestri. The iPhone reached supply-demand balance only during the March quarter, which will cause a steeper-than-usual sequential decline for fiscal Q3, he said. The iPhone is coming off a record quarter, with revenue surging 66% year on year to $47.9 billion on strong iPhone 12 sales. The 5G transition is still in “early days,” Cook said, noting that a lot of 5G upgrades are ahead, especially in markets outside China and the U.S. Revenue in the quarter ended March 27 set a fiscal Q2 record, rising 54% to $89.6 billion.