- Apple revenue fell short of Wall Street expectations in its fiscal fourth quarter on Thursday, which Apple CEO Tim Cook attributed to larger-than-expected supply constraints.
- Apple’s overall revenue was still up 29% on an annual basis and each of its product categories grew on an annual basis.
- Apple hasn’t provided official guidance since the start of the pandemic, but Cook said Apple expects “solid year-over-year revenue growth” in the December quarter despite the fact Apple will face worse supply constraints.
Apple revenue fell short of Wall Street expectations in its fiscal fourth quarter on Thursday, which Apple CEO Tim Cook attributed to larger-than-expected supply constraints on iPhones, iPads, and Macs.
Apple fell under 3% in extended trading.
“We had a very strong performance despite larger than expected supply constraints, which we estimate to be around $6 billion,” Cook told CNBC’s Josh Lipton. “The supply constraints were driven by the industry wide chip shortages that have been talked about a lot, and COVID-related manufacturing disruptions in Southeast Asia.”
However, Apple’s overall revenue was still up 29% and each of its product categories grew on an annual basis.
Here’s how Apple did versus Refinitiv consensus estimates:
- EPS: $1.24 vs. $1.24 estimated
- Revenue: $83.36 billion vs. $84.85 billion estimated, up 29% year-over-year
- iPhone revenue: $38.87 billion vs. $41.51 billion estimated, up 47% year-over-year
- Services revenue: $18.28 billion vs. $17.64 billion estimated, up 25.6% year-over-year
- Other Products revenue: $8.79 billion vs. $9.33 billion estimated, up 11.5% year-over-year
- Mac revenue: $9.18 billion vs. $9.23 billion estimated, up 1.6% year-over-year
- iPad revenue: $8.25 billion vs. $7.23 billion estimated, up 21.4% year-over-year
- Gross margin: 42.2% vs. 42.0% estimated
iPhone sales were up 47% year-over-year, but still came in under Wall Street estimates.
Apple hasn’t provided official guidance since the start of the pandemic, but Cook said Apple expects “solid year-over-year revenue growth” in the December quarter despite the fact Cook said Apple will face worse supply constraints, higher than the $6 billion hit to revenue in the September quarter. Still, Apple says that its December quarter will be the company’s largest in terms of revenue in its history.
Apple CFO Luca Maestri said in a call with analysts that iPad sales would decline year-over-year in the December quarter due to supply constraints while other product categories would grow.
Read more on CNBC
