Apple and Amazon reported “disappointing quarterly results in a sign that the global supply-chain crisis is hobbling even the mightiest companies,” Bloomberg News claims.
Matt Day, Spencer Soper, and Mark Gurman for Bloomberg News:
Amazon, the world’s largest e-commerce company, said its entire fourth quarter profit could be wiped out because of a surge in the cost of labor and fulfillment. Apple, meanwhile, said it lost $6 billion in sales because it can’t meet demand for its products, and could lose more next quarter.
But added together, the tech giants delivered a clear message to investors: This holiday season is going to be difficult.
“It’s going to be a rough holiday season for sure,” said Tuna Amobi, an analyst at CFRA Research. “Expectations are going to come down, across the board.”
Apple Chief Executive Officer Tim Cook told investors that sales would have been $6 billion higher without supply constraints — most notably, a lack of [legacy] semiconductors. Supply-chain constraints will make many of those items harder to get. Cook expects the problem to eclipse the $6 billion toll it took last quarter.
MacDailyNews Take: In actual reality, Apple posted an all-time September quarter revenue record of $83.4 billion, up 29% year over year – yes, a company Apple’s size grew 29% year over year. For the 2021 fiscal year, Apple reported revenue of $366 billion, representing 33% annual growth. For the 2021 fiscal year, Apple reported net income (profit) of $94.7 billion.
Apple’s quarterly income, fiscal 2021:
• Q121: $28.8 billion
• Q221: $23.6 billion
• Q321: $21.7 billion
• Q421: $20.6 billion
Total 2021 net income: $94.7 billion
That’s right, Apple made more in the last 365 days than Lockheed Martin, Dell, General Motors, Ford, or FedEx are worth.
And, yes, the various and sundry reactions, rational and irrational, to COVID-19, have caused all manner of supply chain disruptions worldwide. Shocking.
Apple’s holiday season is going to be so “difficult” that the company might only generate a $115+ billion in revenue in some 90-odd days, setting yet another new all-time quarterly revenue record.
Again, profit from irrational overreaction. This too shall pass.
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