2 months ago
Apple Warns of Slower September-Quarter Growth Amid Supply Constraints
Apple said its sales for the next quarter will grow slower than many investors expected because it can’t get enough parts to make its products.
The company’s iPhone sales were strong, but the growth rate is lower than analysts thought.
Mac sales went up, but iPad sales fell.
Apple’s services business also grew, but not as fast as expected.
Because of these supply problems, Apple’s shares dropped a little after the announcement.
Apple forecasts 9%‑11% revenue growth, below the 12% Wall Street target, citing supply constraints.
iPhone sales rose 21.7% to $54.25 B, but iPhone revenue growth is lower than the 17.6% expected.
Mac sales increased 28.7% to $10.35 B, while iPad sales fell 5.9% to $6.19 B.
Services revenue grew 12.1% to $30.74 B, missing estimates amid App Store pressure.
Shares fell 5.5% after hours as Apple warned of supply chain limits and explored alternative memory chip suppliers.
- Who
- Apple Inc., led by CEO Tim Cook and CFO Kevan Parekh
- What
- Apple forecasts slower revenue growth for the September quarter due to supply constraints
- Where
- Apple Inc., global operations
- When
- Fiscal third quarter ended June 27, 2024
- Why
- Limited flexibility in the supply chain and a shortage of advanced chipmaking technology
Key facts
- Revenue growth forecast
- 9% to 11%
- iPhone revenue growth
- mid-teens rate
- Gross profit margin
- 47% to 48%
- Share price movement
- fell 5.5% after hours
- Mac sales increase
- 28.7%
- iPad sales change
- -5.9%
- Services revenue growth
- 12.1%
Quotes
Kevan Parekh
Chief Financial Officer of Apple, speaking on earnings call
“We’re seeing some very significant (supply) constraints currently with limited flexibility in the supply chain to remedy it, and we’re evaluating all options for alternative suppliers of memory chips.”
indianexpress.com
“Apple expects revenue growth of 9% to 11% in the quarter compared with a year earlier, less than the 12% rise predicted by Wall Street.”
indianexpress.com
Sources
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