Supply Issues Cost Apple $6 Billion

Apple's ($AAPL@US) revenue fell short of Wall Street expectations in its fiscal fourth quarter. Apple CEO Tim Cook attributed the performance to supply constraints on iPhones, iPads, and Macs driven by industry-wide chip shortages and Covid-related manufacturing disruptions in Southeast Asia. Apple fell under 3% in extended trading. However, the company’s overall revenue was still up 29%, and each of its product categories grew on an annual basis. iPhone revenue is up 47% year-over-year, and services jumped 25%. Apple hasn’t provided official guidance since the start of the pandemic, but it still expects solid year-over-year growth in the December quarter despite worsening supply constraints. In fact, Apple says its December quarter will be the company’s largest in terms of revenue in its history. The expectation of year-over-year sales growth suggests that Apple sees significantly more demand for its new iPhone 13 models than it can supply. Apple’s annual revenue for its fiscal 2021 was up 33% for 2020 to $366 billion.