Apple expects $4 billion to $8 billion Q2 shortfall

Apple had a very good quarter from January to March on the financial side, but the group expects supply constraints for the current quarter due in particular to Covid-19. Tim Cook, Apple’s boss, and Luca Maestri, the company’s chief financial officer, raised the subject during the phone call that followed the publication of the financial results.

A rocky quarter for revenue

Apple expects a shortfall of between $4 billion and $8 billion for the April-June quarter. According to Luca Maestri, this is significantly more important than what the company experienced during the first three months of the year. Supply constraints caused by Covid-19-related disruptions and industry-wide chip shortages are impacting the ability to meet customer demand for the group’s products, he said.

The amount varies between 4 and 8 billion dollars because Apple is unable to predict the future in terms of a return to normal. Many suppliers are currently experiencing a slowdown or even a temporary halt in production due to the lockdowns in China. The country wants to be very strict with the Covid-19 and seeks to get rid of it instead of living with it. This therefore has consequences for production companies.

So far, supply issues have mainly affected iPads and high-end MacBook Pro models. Tim Cook said that going forward, most product categories will be affected, which will ultimately affect Apple’s revenue for the current quarter.