Tim Cook's final Apple earnings call amid ‘hundred year flood’ in memory chip pricing
Apple CEO Tim Cook announced supply chain constraints affecting iPhone and Mac sales during his final earnings call, leading to a drop in share price. Despite the short-term challenges, the company remains focused on its transition to new leadership under John Ternus.
Why it matters
As the world's most valuable company, Apple's supply chain issues and leadership transition serve as a bellwether for the broader technology sector and global economy.
Apple said it is facing severe supply constraints that will affect sales of iPhones and Macs in the months ahead, underscoring the challenges looming over the company as Tim Cook prepares to hand over the CEO reins.
In his final earnings call as CEO, Cook said he has never been more optimistic about the opportunities ahead for Apple. “I am beyond excited,” said Cook, who has led the company for 15 years and will pass the CEO baton to John Ternus in September . But Cook’s confidence in the future stood in contrast to the picture that he and other executives painted of the current business conditions.
“We’re seeing some very significant constraints currently, with limited flexibility in the supply chain,” Cook said. “There’s a quarter where we’re going to be scrambling on the supply side,” he acknowledged at another point.
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