Apple results: Shares dive after tech giant misses expectations
Apple saw record revenues of $83.4bn (£60bn) in the three months to September but a failure to live up to analyst expectations saw the firm’s shares plummet five per cent almost immediately.
Revenues, though up 29 per cent year on year, were around a billion-dollars shy of Wall Street’s consensus expectations of $85bn, with earnings-per-share of $1.23.
Boss Tim Cook warned of “larger than expected supply constraints” and said he was unsure when supply issues would ease.
“We’re doing everything we can do to get more (chips) and also everything we can do operationally to make sure we’re moving just as fast as possible,” he told Reuters.
According to Cook, supply chain issues are going to cost $6bn in sales in the fourth quarter, as holiday sales will only worsen the situation.
“We’re projecting very solid demand growth year over year. But we are also predicting that we’re going to be short of demand by larger than $6 billion,” he said.