Apple now expects September quarter sales to grow between 9% to 11%, lower than the street expectations of 12% growth. The next quarter, the fourth in Apple’s fiscal year, could also be the one where the next iPhone models are launched.
For the quarter gone by, Apple reported revenue of $109.42 billion, higher than estimates of $108.65 billion. iPhone sales stood at $54.25 billion, also higher than the $53.86 billion estimate.
Revenue from the iPad and Services business turned out to be below analyst expectations.
Apple shares had rallied significantly during the recent sell-off in chip stocks, making it the most valuable company in the world after surpassing Nvidia, and also touching $5 trillion in market capitalization.
The company stated that it has been struggling to secure enough computer processors and also counter the fast rising memory costs, which had prompted it to raise prices for some of its products earlier this month.
CFO Kevan Parekh highlighted on the earnings call that not just supply chain issues, but currency fluctuations are also impacting growth.
Outgoing CEO Tim Cook likened the memory shortage issue to a “100-year flood”, while adding that the chip shortage was fueled by the higher-than-expected demand for the iPhone and the iMac.Apple has also warned that services growth will decelerate in the September quarter, adding that regulatory changes in the App Store business model in the European Union and elsewhere could also have an impact.
The company is planning several new Macs and iPads across the end of this year and next spring that could help boost sales. They include the first touch-screen MacBook and a revamped iPad mini, part of end-to-end refreshes to both product lines.
Shares of Apple ended 6.3% lower in the extended session at $312.33. The stock was down 1.4% at the close of the regular trading session.
(With Inputs From Agencies)
