Global chips shortage affects phone makers
During an investor conference on Tuesday, Apple said the impact of the global chip shortage is less worrisome in the third quarter but will be worse in the fourth quarter of 2021, affecting iPhone production.
Earlier, Apple said it had ordered more than 100 million A15 chips for iPhone 13 from Taiwan’s partner TSMC (China).
Reacting to this forecast, Apple shares fell 1.7% to $144.24 in post-conference trading.
On the same day, Apple reported better-than-expected third-quarter sales, with sales in the China region growing 58% to $14.76 billion in the quarter ended June 26.
As a result, total sales of iPhone reached $ 81.43 billion, higher than expected and brought a profit of $ 21.74 billion for Apple.
Apple told investors that a chip shortage could cut sales by $3 to $4 billion in the latest quarter. Also during the financial report, CEO Tim Cook said the company is facing challenges. chip shortage due to higher-than-expected market demand and difficulty in filling the entire supply chain.
Meanwhile, Apple’s strongest sales growth is currently mainly coming from the Chinese market. Sales records were recorded not only on iPhones but also on Macs, wearables, home appliances and other services in the mainland market.
The developed 5G infrastructure in China has driven sales of devices such as the iPhone 12 Pro and 12 Pro Max, reaching $39.57 billion in a market of billions of people. Thereby boosting Apple’s gross profit margin to increase by 43.3%.
However, analysts say that 5G is still in its early stages in many countries around the world. And the increase in iPhone sales will only be a short-term boom as users pre-purchase 5G phones to use them longer.
However, Apple also recorded record revenue in other segments, such as TV services, music and App Store. Apple’s total global subscribers reached 700 million accounts, an increase of nearly 40 million accounts compared to the previous quarter.
In addition, another segment expected to bring record revenue for Apple is AppleCare repair service. Many warranty centers are expected to reopen when Covid-19 is controlled regardless of whether the chip is in short supply or not.