Supply Constraints Hit IPhones, Apple Reports
Supply constraints hit iPhones hard in the quarter that ended June 26, said Apple Chief Financial Officer Luca Maestri. CEO Tim Cook called such chip and other shortages an industry problem. For the iPhone, demand “has been so great and…
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so beyond our own expectation that it's difficult to get the entire set of parts within the lead times that we try to get,” he said Tuesday: Supply constraints have largely been on legacy semiconductor nodes. “We're paying more for freight than I would like to pay, but component costs continue in the aggregate to decline,” he said. “We'll do everything we can to mitigate whatever set of circumstances we're dealt.” IPhone sales in Q3 jumped 50% from the year-ago quarter to $39.5 billion. Such “sales remained extremely strong across all regions” and exceeded Canaccord's 35% estimate, Michael Walkley wrote investors Wednesday. “Apple is well-positioned to continue to benefit from the 5G upgrade cycle,” the analyst wrote. He anticipates “strong overall growth trends as 5G smartphones ramp.”