Apple Issues Weaker Revenue Forecast Due to Supply Chain Constraints
Apple issued a weaker-than-expected revenue forecast for the current quarter, citing supply chain constraints rather than weak demand. The company's shares fell by 5.5% in after-hours trading as it projected growth of 9%-11%, below Wall Street’s estimate of 12%. CEO Tim Cook highlighted significant challenges with advanced chipmaking technology and limited supplier flexibility. Despite strong third-quarter results, including a record $54.25 billion in iPhone sales and overall revenue rising to $109.42 billion—beating estimates—investors remain cautious about future demand amid potential price hikes for iPhones. CFO Kevan Parekh noted that gross profit margins are expected to fall slightly between 47% and 48%, down from the current 50.1%. Analysts suggest concerns may persist if supply issues continue or if consumer interest wanes after initial buying surges.
Topics: Apple silicon chips iPhone sales revenue guidance supply chain