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Apple Misses Revenue in Q4 as Chip Shortage Dents iPhone Sales

Published 10/28/2021, 04:37 PM
Updated 10/28/2021, 04:37 PM
© Reuters Apple Earnings Beat, Revenue Misses In Q4

By Yasin Ebrahim

Investing.com - Apple reported mixed fiscal fourth-quarter results as revenue fell short of Wall Street expectations as the ongoing chip shortage weighed on iPhone sales.

Apple Inc (NASDAQ:AAPL) shares lost 4.26% in after-hours trade following the report.

Apple announced earnings per share of $1.24 on revenue of $83.36 billion. Analysts polled by Investing.com anticipated EPS of $1.23 on revenue of $84.85 billion.

iPhone revenue, which makes up about half of total revenue, rose to $38.98 billion from $26.44 billion a year earlier, missing estimates of $41.60 billion, driven by strong demand from the latest slate of iPhones.

Apple CEO Tim Cook, in an interview with CNBC, flagged the drag on iPhone sales from "larger than expected supply constrains," which he estimated to be around $6 billion.

Revenue from Apple’s service business including Apple News, Apple TV+ and iCloud, grew to $18.28 billion from $14.55 billion, beating estimates of $17.57 billion.

Wearables, home and accessories generated $8.79 billion in revenue, up from $7.88 billion, missing consensus of $9.28 billion.

Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com's earnings calendar

Latest comments

Unfortunately, this will be a common theme across all industries using semiconductor chips and electronic parts in their products. Apple, Microsoft, Samsung. Car companies too. At the current rate, production in Germany and China will continue to fall behind demand. To add to their troubles in 2020-2021, natural disasters and problems have been rampant, such as Typhoon Chanthu in Asia, the massive power outage in Dresden, Germany, and China's port closures and government-sanctioned power regulations. The entire global supply chain has been disrupted. Companies like Apple need to find alternative manufacturers to source their parts from, otherwise, they may end up waiting up to a year on parts, leaving behind upset customers and plummeting revenue figures. https://www.siliconexpert.com/blog/china-energy-crisis/
Why do I want to buy an overpriced I phone when an Android can do the same job?
Not chip shortages that held back sales… we have tons of phones here… no one bought them…
About time! This company will be worthless in 20 years!!
Only up from here
no I wish I crazy rich and I want to become my money I put up my picture I am so crazy rich I'm crazy Rich so I would like both for and I pay you
This company is rotten to the CORE, so glad it is happening to them and their fanboys...
I wish I knew how to trade this thing! I need to learn
Hello
The wearables rev is NOT a beat
Typo :)
 No, a typo is spelling something wrong.  This was laziness.
Hi
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