Apple revenue forecast lags Wall Street targets as iPhone maker struggles with supply chain
Apple has issued a revenue forecast that falls short of Wall Street expectations due to supply chain constraints, particularly regarding advanced chipmaking technology. Despite strong demand for products like the Mac, the company is struggling to secure necessary components.
Why it matters
Apple's supply chain challenges reflect broader issues in the global semiconductor industry affecting major tech companies.
Apple forecast sales for the current quarter ending in September would grow more slowly than Wall Street targeted as the iPhone maker struggled to get the parts it needed to deliver products , and shares fell 6% in after-hours trade.
Apple Chief Financial Officer Kevan Parekh told analysts and investors on a call that the iPhone maker expects revenue growth of 9% to 11% in the quarter compared to the year before.
That was less than the 12% rise predicted by Wall Street, according to LSEG data. He forecast iPhone revenue would grow at a mid-teens rate, compared with Wall Street’s target of 17.6%, according to LSEG, and that gross profit margins would be between 47% and 48%.
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