Chip shortage, Covid costed up to $8 billion to Apple: CEO Tim Cook

Apple recently announced the financial results for the quarter ending in March. For this quarter, the company posted a net revenue of $97.3 billion, which marks an increase of nine percent year-on-year. the company had posted a net revenue of $89.6 billion during the same quarter last year. Additionally, the company also reported a net quarterly profit of $25 billion, which is up from the profit of $23.6 billion, that the company reported during the same time last year.

“We are delighted to see the strong customer response to our new products, as well as the progress we’re making to become carbon neutral across our supply chain and our products by 2030,” Apple CEO Tim Cook said while announcing the quarterly results.

“We are committed, as ever, to being a force for good in the world — both in what we create and what we leave behind,” he added.

Talking to the shareholders on the sidelines of the announcing its quarterly results, the Apple CEO also mentioned that the company’s business had been significantly impacted by the ongoing global chip crisis and the Covid-19 pandemic, which had led the company to halt its production facilities in China.

“We’ve estimated the constraints to be in the range of $4 billion to $8 billion,” Cook said in the quarterly earnings call adding that these numbers were “primarily centered around the Shanghai corridor”, The Indian Express reported. On an optimistic note, the Apple CEO said that “almost all of the affected final assembly factories have now restarted”.

While announcing the quarterly results, Apple said iPad sales fell two percent to $7.65 billion owing to supply-chain constraints. Similarly, revenue from Mac computers was also impacted by supply-chain issues. Despite that the sales rose 14.7% to $10.4 billion. Interestingly, sale of home speakers and accessories rose 12% to $8.8 billion. Apple also revealed that it now has 825 million paying subscribers across its at least seven subscription offerings, which is up by 40 million from 785 million last quarter, as per a Reuters reported.

iPhone 13 remained Apple’s star performer. Cook also said that he “could not be happier with the iPhone 13 family of products” as it accounted for a $120 billion in revenue from sales.

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Conclusion

Apple announced their financial results for the quarter ending in March and said that for this quarter, the company posted a net revenue of $97.3 billion and an operating profit of $25 billion. The company had also said that it now has 825 million paying subscribers across its at least seven subscription offerings