Apple executives warned its revenue could take an $8 billion hit from supply issues in its current quarter due to ongoing component shortages and the impact of lockdowns affecting Chinese production facilities, as the company hailed a strong fiscal Q2 2022.
During its earnings call for the three months to 26 March, Apple CFO Luca Maestri cautioned frequently-cited supply constraints would be significantly worse in its fiscal Q3, taking a toll of between $4 billion and $8 billion as an existing silicon shortage was compounded by disruptions to its supply chain.
Alongside the production issues, Maestri noted its future figures would be impacted by a decision to pause sales in Russia and a slowdown in customer demand in China following Covid-19 (coronavirus) disruptions.
CEO Tim Cook added lockdowns in the “Shanghai-corridor” had not taken effect during its fiscal Q2 and so did not impact results.
He expressed optimism as work at “almost all of the affected final assembly factories have now restarted”.
Despite the uncertain outlook for its current quarter, the pair were upbeat on Apple’s performance so far this year.
Maestri said Apple had booked a “record March quarter”, noting continued “strong customer demand for our products” which contributed to “an all-time high for our installed base of active devices”.
Apple booked revenue of $97.3 billion, up 9 per cent on the comparable period in fiscal 2021. Net income was $25 billion, up from $23.6 billion.