Apple reports for the holiday quarter iPhone sales soar despite supply shortage – CBS San Francisco

CUPERTINO (AP) – Apple has addressed a supply shortage that has limited production of iPhones and other popular devices to deliver the most profitable holiday season.

The results released Thursday for the final three months of 2021 help illustrate why Apple is even stronger at the end of the pandemic than it was when the crisis began two years ago. .

At the time, Apple’s iPhone sales were soaring as consumers started using their older devices for longer periods of time. But now, the Cupertino-headquartered company can’t seem to keep up with the growing demand for a device that’s become even more important in an era of massive growth in remote work. .

Apple’s inability to fully satisfy craving for iPhones stems from a pandemic-induced chip shortage that’s affected production of everything from cars to medical equipment.

But Apple has so far navigated the shortfalls better than most companies. That deft management helped Apple report iPhone sales of $71.6 billion for the October-December period, up 9% year-over-year.

That sales increase is likely to be even stronger if Apple can secure all the chips and other components needed to make the iPhone. That issue hit Apple’s September-September quarter, with management estimating that supply shortages slashed iPhone sales by about $6 billion. The company can address how supply shortages affected its performance in the most recent quarter in a conference call with analysts scheduled for late Thursday.

Despite what the resulting shortages caused, Apple still earned $34.63 billion, or $2.10 per share, up 20 percent from the same time last year. Revenue increased 11% year-over-year to $123.95 billion.

Apple’s continued success helped push the company’s market value above $3 trillion for the first time earlier this month. Its share price, however, has fallen 13% since hitting that peak amid worries about expected rate hikes aimed at denting monstrous inflation, fueled in part by a slowdown in inflation. supply shortage.

Its shares rose more than 3% in extended trading Thursday after Apple’s first-quarter financial numbers were released.

Supply issues surrounding Apple devices have increased the importance of the company’s services division, fueled by commissions from digital transactions on iPhone apps, subscriptions and subscriptions. music and video streaming and repair plans.

Up to 30% commissions obtained from apps distributed through Apple’s proprietary app store have become the focus of a fierce legal battle that has taken place during a year of high-stakes testing, as well as As recently proposed reforms introduced in the U.S. Senate have broken down corporate barriers that prevent consumers from using alternative payment systems.

For now, however, the service department is still booming. Its revenue for the past quarter totaled $19.52 billion, up 24%.

Apple is reportedly aiming for another potentially huge money-making opportunity with the introduction of an augmented reality headset that can project digital images and information while users interact with objects and people. others. True to its covert form, the company has never said it’s working on that kind of technology.

But Apple CEO Tim Cook has publicly shared his excitement about the potential of augmented reality in public presentations, and analysts believe the rumored headset from The last long may launch later this year – unless it is delayed due to a supply shortage.

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Dustin Huang

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