Apple tumbles after supply crunch hurts iPhone maker’s sales

Apple Inc. fell in late trading after quarterly revenue missed analysts’ estimates, hurt by supply constraints that took a bite out of the iPhone maker’s sales.

Apple Inc. fell in late trading after quarterly revenue missed analysts’ estimates, hurt by supply constraints that took a bite out of the iPhone maker’s sales.

Fiscal fourth-quarter revenue amounted to US$83.4 billion, missing estimates of US$84.7 billion. That represents growth of 29 per cent from the year-earlier period, but that quarter didn’t include a new iPhone. Apple released the iPhone 13 in the last few weeks of the latest quarter, helping boost sales.

The results spark fresh concerns about Apple’s ability to navigate a global supply crunch that has wreaked havoc on the auto, tech and consumer-product industries. The company has a slew of new products that it needs to get into consumers’ hands before the holidays, a period that’s expected to set sales records. In addition to the iPhone upgrade, the company has rolled out new watches, iPads, Mac computers and other items.

Chief Executive Officer Tim Cook said on CNBC that the supply constraints were worse than expected last quarter and cost it about US$6 billion. 

The shares tumbled as much as 5.3 per cent to US$144.42 in late trading after the results were released. They had been up 15 per cent this year through Thursday’s close.