Apple's fourth quarter revenue in 2021 was below expectations. Apple CEO Tim Cook stated that this was due to supply constraints on iPhones and iPads as well as Macs.
Cook stated that Apple's supply problems cost Apple approximately $6 billion in a CNBC interview.
Cook said that despite the larger than anticipated supply constraints (which we estimate to be about $6 billion), Cook had a strong performance. "The industry-wide chip shortages, which have been discussed a lot, as well as COVID-related manufacturing disruptions (in Southeast Asia) caused the supply constraints," Cook said.
Apple has had long lead times for multiple products over the past several months, including iPads and Macs. The iPhone 13 launched quickly, so Apple was unable to meet demand.
Cook stated that he anticipates "solid year over year revenue growth" for the December quarter. However, Apple will continue to face supply issues. Cook said that COVID-related manufacturing problems have "improved greatly," however, he believes that there will be continued chip shortages. Cook says that older chips are those in shortage, rather than the A and M-series chips found in newer Apple devices.
Cook stated that Apple buys primarily leading-edge nodes, and is having no issues with them, but there is competition on legacy codes because many companies are competing for supply. He stated that it was difficult to predict when the supply will increase, so he doesn't know when. Apple's operations team is trying to reduce cycle ties and increase yields in an effort to rectify the situation.
Luca Maestri, Apple's Chief Financial Officer, confirmed that supply constraints will have a greater impact on the December quarter during the quarterly earnings conference. The supply constraints will cause iPad sales to drop year-over-year, but Apple expects that revenue from all other categories to grow.
