Apple Inc. shares slid after it predicted that supply constraints would cost $4 billion to $8 billion in revenue during the current quarter
predicted that supply constraints would cost $4 billion to $8 billion in revenue during the current quarter, casting a pall on record-setting results that the company just reported., will take a toll on the June quarter, Apple said during a conference call Thursday. The fiscal second quarter’s sales and profit had topped analysts’ estimates, fueled by strong demand for the iPhone and digital services, and the company announced $90 billion in new stock buybacks.
The stock had already fallen about 7.8% this year before the company gave the warning, hurt by a broader tech downturn. Apple had gained 34% in 2021, its third straight year of increases. The latest supply woes didn’t begin until the very end of March, Apple said, so the last quarter wasn’t affected. Sales rose 8.6% to $97.3 billion in the period, marking a record for a non-holiday quarter, Apple said earlier on Thursday. Analysts had projected $94 billion on average. Profit came in at $1.52 a share, compared with a prediction of $1.42, initially sending the shares up in late trading.
Apple had previously said the March quarter would be a record, though its growth rate would decelerate for both the overall business and its services segment. The company’s December quarter was a blowout sales period, exceeding Wall Street estimates with an all-time revenue high of nearly $124 billion.
Following its usual pattern, Apple used the company’s second-quarter report to increase its dividend and boost stock repurchases. The dividend will grow 5% to 23 cents a share.
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