Apple shares slip as tech worries return
Sales And Analysts’ For Profit Quarter Had Apple Second Topped Estimates
Apple shares slipped on Friday after the iPhone maker predicted that supply constraints would cost from $4bn (€3.8bn) to $8bn (€7.6bn) in revenue during the current quarter, casting a shadow over the record-setting results the company just reported.
Covid restrictions that have swept China in recent weeks will take a toll on the June quarter, Apple said during a conference call late on Thursday.
The second quarter’s sales and profit had topped analysts’ estimates, fuelled by strong demand for the iPhone and digital services, and the company announced $90bn in new stock buybacks. The shares slipped almost 2% at one stage during the New York session.
The outlook renewed fears that supply-chain woes will continue to roil the tech industry following a short-lived recovery from pandemic struggles. Companies ranging from Microsoft to Texas Instruments have already said that China’s Covid-19 lockdowns will crimp sales and make it harder to produce products such as the Xbox games console.
The Xi Jinping administration has embraced a strict zero-Covid policy to stop the pandemic’s spread, which has reverberated through the world’s supply lines.
Chip shortages and the Ukraine war also are causing disruptions, chief executive Tim Cook had said during the call.
“We are not immune to these challenges, but we have great confidence in our teams, and our products and services — and in our strategy,” he said.