Apple Inc. is overcoming a global shortage of PC microcircuits that is increasing production costs by announcing record sales for the Christmas and New Year holiday quarters, beating analysts’ estimates and predicting that its deficit is narrowing.
The iPhone manufacturer is the largest company in the world in terms of market capitalization.
Apple has handled supply chain challenges, such as industrial shutdowns and transport delays due to the pandemic, better than any of its top competitors, analysts say.
Apple shares rose about 5%, offsetting about 50% of their losses during the year. Profits were recorded after the company’s move to trigger, about its ambitions for the next stage of digital reality development, known as metaverse.
More people wanted to buy mobile iPhones and iPads, as well as other electronic accessories during the holiday quarter, with demand outstripping Apple stock, bringing the company’s cost of sales to over 6 billions of dollars, in a development that he had announced would happen.
The company, as in some cases the best customer of several suppliers, used its purchasing power in order for its suppliers to have enough accessories to increase the record sales recorded by iPhones, Macs, electronic accessories that can to be worn, but also the various electronic gadgets.
The company executives said that the lack of microcircuits mainly affects the older models of its devices and in particular the sales of iPad devices that are evolving at a slower pace.
“They have managed the supply chain better than anyone, and this is evident in the results,” said Ryan Reith, who is studying the smartphone market for consumer data processing company IDC.
The four best mobile phones in terms of sales in mainland China were all iPhone models, as announced by Apple, as its competitors were trying to face tempting offers.
Apple has emerged as the best-selling company in China for the first time in six years, market research firm Counterpoint Research said on Wednesday.
Apple’s growing sales of services such as music, television, and subscriber subscriptions have also helped reduce the effects of slow device availability. The company announced that it has 785 million subscribers for at least seven subscription services it promotes. That number has risen by 40 million in the last quarter, with investors worried about a slowdown in Apple’s competitors, such as Netflix Inc.
Apple chief financial officer Luca Maestri told Reuters that tackling the shortage of microcircuits should translate into a loss of nearly $ 6 billion in revenue this quarter. However, he declined to make an assessment for the future.
“The level of restrictions will depend greatly on other companies, on the demand for microcircuits from other companies, but also on industrial sectors,” he said.
SOURCE: ΑΠΕ-ΜΠΕ
Source From: Capital
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