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Apple flags worsening supply constraints for iPhone and iPad
Apple said supply constraints are already affecting Mac availability and are expected to spread further, hitting iPhone and iPad sales ahead of the next quarter.
Apple warned that growing supply constraints could create a significant impact on its most popular products, sending its shares down more than 7% in after-hours trading, according to BBC Business.
The company said limited flexibility in its supply chain is becoming more severe, noting that the constraints are tied in part to key chip components that go into devices such as Macs, iPhones, and iPads.
Apple also framed the issue as largely driven by demand forecast, with Tim Cook saying the company is dealing with unexpected demand for iPhone and Mac products rather than a routine supply problem.
Despite the warning, Apple reported a 16% revenue increase to $109 billion and a 26% profit increase to $29 billion for the period, with iPhone sales up 22% and Mac sales up 25%, and said gross margin benefited from tariff refunds that lifted it by 2%.