Apple stock swings to a loss after warning of $4B – $8B in negative supply chain impacts

Apple easily beat earnings expectations and set a new quarterly record for its fiscal second quarter ended March 26, 2022, but Apple expects to see a $4B – $8B hit from supply chain disruptions in the current quarter which sent its stock price lower in after-hours trading.

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Emily Bary for MarketWatch:

“Supply constraints caused by COVID-related disruptions and industry-wide silicon shortages are impacting our ability to meet customer demand for our products,” Chief Financial Officer Luca Maestri said on a conference call related to Apple’s AAPL, +4.52% earnings report Thursday.

The company anticipates that it will see $4 billion to $8 billion in negative impacts related to the constraints in its June quarter, which Maestri added was “substantially larger” than what Apple experienced during its March quarter.

While Apple fell some sting from silicon shortages in the March period, it now faces new challenges brought on by temporary factory closures in China related to COVID-19 outbreaks, Chief Executive Tim Cook noted. He expects that the pressures will impact “most of the product categories,” even though some factories have now reopened.

MacDailyNews Take: As of this article’s publication, the price of Apple stock in after-hours trading is down $5.24 (-3.20%) to $158.41.

See also: Apple results beat Street with all-time quarterly revenue record of $97.3 billion and MacDailyNews presents live notes from Apple’s Q222 conference call.

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  1. I’m glad Apple is telling shareholders that they could be in for a future loss. I hope Apple clears out those weak investors and the share price falls. That way Apple can repurchase more shares for less money. Apple’s share price is in a good spot and pretty much where I thought it would end up. Apple has been holding up well this year and I don’t expect much to change under these economic conditions and the ongoing war. $90B in buybacks is good if the share price doesn’t rise. I had hoped for a higher dividend but this is Apple so I knew that wasn’t going to happen. I had expected at least an 8% dividend but even that didn’t happen. I’m not starving, so I’ll take whatever I can get from Apple and be grateful.

  2. At least the problem is the supply and not the demand! Of course it hurts to some degree but Apple has the advantage that if somebody wants an Apple product, she or he is willing to wait. There is not really a good alternative. – As for Windows computers or Android phones, if one is not available, the other one will do.

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