Apple says chip shortage could impact iPhone production in Q4, 2021

Apple posted record third-quarter results but it also forecasts a slow down moving forward on account of the worsening impact of chip shortage that is already affecting Macs and iPads and will extend to iPhone production in the fourth quarter.

During a call to investors, Chief Executive Tim Cook said that the older chips are affected by shortage but these are still needed as supporting parts to make iPhones.

Tim declined to comment on whether the impact of chip shortage would continue in the first quarter of the next fiscal year. Angelo Zino, an analyst with research firm CFRA, said Apple could be stockpiling chips for its upcoming iPhones at the expense of the existing ones.

Apple said that the revenue for Q4 will still see double-digit growth, but not as much to match the 36.4% growth in the last quarter. Apple will soon release new iPhones, Apple Watch, and AirPods and these should hopefully bolster the revenue during the next quarter.

It must also be noted that the Cupertino giant made a similar prediction of revenue being hit due to chip shortage to its investors in the last quarter, but the impact so far has been significantly lower than expected.

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Apple Q3 Results

Apple shared remarkable Q3 results, riding on better-than-expected revenue from iPhone sales. The iPhone review went up by almost 50% totalling $39.57 billion, with China raking in record numbers.

Mac and iPad sales increased year on year as well. Macs made $8.24 billion in revenue and iPad made another 7.37 billion. Revenue from other products that include AirPods and the Apple Watch saw a 40% increase YoY, bring in a revenue of $8.77 billion. Apart from hardware, services accounted for $17.48 billion, a 33% growth YoY.

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