November 29, 2021

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Apple shares drop dramatically after earnings drop - E24

Apple shares drop dramatically after earnings drop – E24

iPhone sales were disappointingly low in the third quarter. Senior manager Tim Cook estimates that delivery problems are costing the company six billion.

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Apple’s revenue rose to $83.36 billion, up from $64.7 billion in the previous year. That was slightly lower than analysts’ expectations of $84.69 billion before the earnings release, according to estimates obtained from Bloomberg.

At the same time, the result ended at $20.55 billion, an improvement of $8 billion over the same quarter last year. Thus, earnings per share were $1.24, which is in line with prior estimates.

Apple is running skewed fiscal years. For the tech giant, that means the three months of July, August and September were the fourth and final quarter of fiscal 2021.

Apple shares fell more than three percent in the aftermarket market just half an hour after the report was released.

Double phone sales

iPhone sales weren’t surprisingly in focus after Apple launched the iPhone 13 in September. Smartphone sales revenue was expected to end at $41.6 billion in the quarter, after delaying the launch of last year’s top model by a month.

But smartphone sales are disappointing. iPhones sold $38.87 billion in the fourth quarter, up from $26.44 billion last year.

Meanwhile, Bloomberg announced earlier this month that Apple is likely to lower production targets for the top model this year due to a global shortage of computer chips.

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Delivery problems cost six billion.

Supply problems present a challenge that could have severe consequences for the company in the quarter that began on October 1. The upcoming months are very important for the company with the huge trading period leading up to Christmas.

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“Our performance was very strong (in our quarterly editor’s note) despite the major delivery issues we had been anticipating, which we estimate to be around $6 billion,” said Apple CEO Tim Cook. CNBC.

The delivery issues were driven by the much-talked-about global chip shortage, and virus-related production problems in Southeast Asia, he continues.

The company doesn’t provide any estimates for the current quarter, unlike most other big tech companies.

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iPad sales are strong, but sales are disappointing

In addition to the well-known iPhone, the technology giant sells a number of other well-known products. Among them is the iPad, which surprised revenue of $ 8.25 billion in the quarter. In advance, revenue was expected to end here at 7.16 billion.

On the other side you will find the product category “Wearable, Home & Accessories” which includes Apple Watch, Airpods and a number of other products. Revenue here was $8.79 billion, short of expectations of $9.28 billion.

Apple announced Wednesday that it has doubled the number of carbon-neutral suppliers. The news came just days before the Glasgow Climate Summit, part of Apple’s plan to have a completely carbon-neutral supply chain by 2030.