Covid, chip shortage impact on Apple up to $8 billion: CEO Tim Cook

Tim Cook 1

Despite the “supply constraints” it is facing from Covid-related disruptions and by silicon shortages, Apple has announced a March quarter revenue record of $97.3 billion, up 9 percent year over year.

CEO Tim Cook said they were “delighted to see the strong customer response to our new products, as well as the progress we’re making to become carbon neutral across our supply chain and our products by 2030”. He added: “We are committed, as ever, to being a force for good in the world — both in what we create and what we leave behind.”

In an earning call after the results, however Cook said he’s looking at Covid-related disruptions and industry-wide silicon shortages to continue for a while. “We’ve estimated the constraints to be in the range of $4 billion to $8 billion,” he said, adding that these were “primarily centered around the Shanghai corridor”. He said the positive side was that “almost all of the affected final assembly factories have now restarted”. Cook was also optimistic with news that cases in Shanghai have decreased over the last few days.

The Apple CEO said he “could not be happier with the iPhone 13 family of products” which he said had given Apple “the overall results that we’ve had on iPhone, which for the first half the revenues were $120 billion and we feel
very, very good about those results”.

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Apple CFO Luca Maestri added: “When we look at top-selling smartphones around the world, we’ve had pretty incredible results during the March quarter. The top six models in the United States are iPhones, the top four in Japan, the top five in Australia, five of the top six in urban China and so on and so forth. So the iPhone 13 has been truly a global success.”

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