Sunday, December 4

Apple: expect shipping delays to continue this holiday season

Even Apple is not immune from the supply chain problems that are causing some of its favorite devices to sell out at retailers. Apple says supply restrictions took about $ 6 billion of its revenue during the company’s September quarter as it struggled to keep up with demand for iPhones, Macs and iPads.

And that figure could be dwarfed by the supply caps that end up costing Apple during the holiday season. «We believe that by the time we finish [December] quarter that the limitations will be greater than the $ 6 billion we experienced in [September]”CEO Tim Cook told Wall Street analysts when Apple announced its quarterly performance yesterday (October 28).

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Apple isn’t looking for loose change. Even with supply issues, the company still posted record revenue for the September quarter, with sales of $ 83.4 billion. While that’s 29% higher than the same quarter last year, it’s lower than Wall Street analysts expected, so you may see Apple’s stock price fall after what otherwise it sounds like a stellar quarterly performance.

Investors could also be spooked by Apple’s guidance for the three months that cover the holiday shopping season. Once again, Apple hopes to set a record for revenue growth, although it is avoiding an accurate forecast as it did during the COVID-19 pandemic.

But Apple assumes the supply shortage will have an even bigger impact on its results during the current quarter. And that makes sense: This will be the first full quarter of sales for all the products Apple announced in September, along with initial sales of the newly introduced MacBook Pro models with Apple’s latest M1 Pro and M1 Max chips.

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Apple inventory: what we know ahead of the holidays

We’ve been tracking the inventory on hand for Apple’s best products, and it certainly reflects a situation where demand exceeds supply. A few days ago, according to our iPhone 13 stock review, ordering an iPhone 13 or iPhone 13 mini meant a delay of at least a week before you could wait for your new model. Add an additional two weeks for iPhone 13 Pro models.

It’s an even more dire story with the latest MacBook Pro inventory, especially if you’re trying to configure your own model. Some of those machines won’t arrive until December.

Apple’s situation is not unique, as anyone looking for a PS5 will tell you. One of the effects of the global COVID pandemic has been chip shortages caused by companies initially reducing orders, only to find they underestimated demand.

Apple’s problem isn’t the newer chips that power its products. Rather, Cook told investors, it is the legacy nodes that are included in many electronic products. Often times, Apple is competing with other companies that need the same components for their devices, which is what is causing delays.

The bottom line for consumers is to order early if you expect to get your gear in time for the holidays. You can also check out our Black Friday 2021 deal hub, where we are monitoring the requested equipment that is still in stock.

Despite its warning about supply constraints, Apple took a largely optimistic attitude about its short-term finances. Strong demand and reports of high customer satisfaction will do that for a business.

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“I feel very comfortable with our operational team,” Cook said. “I think we have a world-class one, and I’m sure they’re doing everything they can to reduce cycle times and improve returns and do all the things you can do in addition to investing in critical capacity to remedy the situation. »

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Reference-www.jugomobile.com

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