Oh, the supply chain woes! Larger than expected supply constraints cost Apple (AAPL) $6b in sales last quarter, with CEO Tim Cook telling investors that the issues will be even worse going into this year’s holiday season.
It’s those pesky chips that are so hard to find these days causing all the trouble for Apple. While the issue has seen “significant improvement” this month, Cook said that shortage is persisting and affecting “most of our products.”
Despite the troubles, Cook expects year-over-year sales growth next quarter, stating that “we’re projecting very solid demand growth year-over-year. But we are also predicting that we’re going to be short of demand by larger than $6 billion.”
why it matters
Shares of AAPL fell sharply on Friday morning, but managed to claw their way back to a less than 2% loss for the day. The hiccup shouldn't be too concerning to investors who have seen their shares grow by nearly 15% year to date.