iPhone’s hot streak could be hampered by global chip shortage crisis

By Nikita Chaurasia  Date: 2021-07-28

iPhone’s hot streak could be hampered by global chip shortage crisis

Apple Inc. recently stated that the global chip shortage that has affected the sales of Macs and iPads, will now hit iPhone production and the expected revenue growth is likely to decelerate. This has resulted in lowering Apple’s shares.

The company executives mentioned that the revenue for the current fiscal fourth quarter will increase by double-digits but will be less than the 36.4% growth rate recorded in the third quarter.

Apple’s executives further stated in a conference call with its investors that although the impact of the chip shortage was less serious than the third quarter, it is likely to worsen in the fourth, reaching iPhone production.

Apple, whose valuation has increased tremendously in about three years to over USD 2.5 trillion, saw a dip in its shares by 1.7% to USD 144.24 in the after-hours trading post the call.

The tech giant also reported that third-quarter sales and revenues surpassed analyst expectations as customers purchased expensive versions of its 5G iPhones and joined its subscription services.

The total revenue reached USD 81.43 billion, above the analyst forecasts of USD 73.30 billion, fueled by the higher than anticipated iPhone sales. The profits of the company were USD 21.74 billion or USD 1.30 per share, beyond the predictions of USD 1.01 per share.

Tim Cook, the CEO, stated during the investor call that chips affected by the shortages are manufactured using older technology but are still required as supporting parts to make the company's iconic device, the iPhone.

Cook mentioned that the company does have some shortages when the demand is higher than the expectations and it gets difficult to get the complete set of parts in the managed time. He refused to comment on whether the shortages would continue till the company’s fiscal first-quarter when it mostly sees its highest iPhone sales.

Apple had previously informed investors that the chip shortage could impede the sales from USD 3 billion to USD 4 billion.

Source Credits –

https://news.trust.org/item/20210727222942-4b1kl/

About Author

Nikita Chaurasia     aeresearch.net

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More

More News By Nikita Chaurasia

Google fined USD 177 Mn by South Korea over anti-competitive practices

Google fined USD 177 Mn by South Korea over anti-competitive practices

By Nikita Chaurasia

The fine is considered to be the ninth-biggest by the regulator to date. It was announced when South Korea’s Telecommunications Business Act, popularly known as “anti-Google law” came into effect.  South Korea’s Kore...

England to become the first country to require EV chargers in new homes

England to become the first country to require EV chargers in new homes

By Nikita Chaurasia

Even the commercial establishments will be required to include EV chargers. The news echoes on U.K.’s efforts to achieve net-zero greenhouse gas emissions by 2050. The British government is expected to introduce a new law in 2021 which wi...

BMW places battery order worth USD 23.8 billion amid rising EV demand

BMW places battery order worth USD 23.8 billion amid rising EV demand

By Nikita Chaurasia

The automaker is planning to use these batteries in its upcoming EVs. BMW had previously signed various battery cell contracts worth USD 14.2 billion. Bayerische Motoren Werke (BMW) AG has increased the orders for battery cells owing to the risi...

TotalEnergies and Iraq ink USD 27 billion oil, gas, solar agreement

TotalEnergies and Iraq ink USD 27 billion oil, gas, solar agreement

By Nikita Chaurasia

French multinational energy company TotalEnergies SE has reportedly signed a USD 27 billion contract for investing in oil, gas, and solar energy production in Iraq. Iraq’s oil minister Ihsan Ismail and Chief Executive Officer of TotalEnergies,...

Fintech startup Skeps secures USD 9.5 million in a Series A funding

Fintech startup Skeps secures USD 9.5 million in a Series A funding

By Nikita Chaurasia

PoS fintech firm Skeps has recently raised USD 9.5 million in a Series A investment round led by Bertelsmann India Investments. The round also saw the participation of existing investor Accel. The new funds will be used to expand the sales, engineer...