Apple shares slid slightly on Thursday after the company announced lower than expected revenue in the fourth quarter of 2021.
The company posted a quarterly revenue of $83.4bn, up 29% year over year but still short of analyst predictions of $84.85bn.
CEO Tim Cook attributed those shortcomings to supply chain problems, citing industry-wide chip shortages and “Covid-related manufacturing disruptions in Southeast Asia”.
“We had a very strong performance despite larger than expected supply constraints, which we estimate to be around $6 billion,” Cook added.
Apple launched a number of new products this quarter, including the iPhone 13, 13 Pro and 13 Pro Max, third-generation Airpods, and most recently, a new MacBook Pro model powered by a custom chip.
The devices saw continued success – iPhone sales went up 47% from a year ago with iPad sales up 21% compared with the same quarter last year.
Apple anticipates significantly more demand for its new iPhone 13 models than what it can supply.
“Apple has had a stellar year with the iPhone 13 despite all the issues in the global supply chain,” said Tom Johnson, an analyst at WPP Mindshare. “You’ll see the familiar lines outside Apple stores this Christmas.”
In remarks to investors on Thursday, Cook highlighted the company’s efforts toward social justice and the climate crisis by decreasing the amount of plastic in its product packaging. Cook also talked about Apple’s Developer Academy in Detroit, a new accelerator aiming to help Black, Latinx, and Indigenous-owned businesses.
“We are infusing our values into everything we make – moving closer to our 2030 goal of being carbon neutral up and down our supply chain and across the lifecycle of our products, and ever advancing our mission to build a more equitable future,” he said.
