Apple Sales Miss Estimates, Supply Issues Barrier

Apple’s revenue fell below Wall Street expectations for the fourth quarter of the fiscal year on Thursday, October 29, 2021. Apple CEO Tim Cook attributed this to larger-than-expected supply restrictions on iPhone, iPad and Macs.

Apple shares fell more than 3 percent during the extended trading period. “Despite larger-than-expected supply constraints, we performed very strongly. This estimate is approximately US$6 billion (equivalent to Rp. 30/10/2021).

Cook added that supply constraints are due to industry-wide chip shortages. In addition, the unrelenting COVID-19 situation has caused production disruptions in Southeast Asia.
Despite this, Apple’s total revenue increased by 29 percent. Each category increased every year.
Here are Apple’s results against analyst estimates noted by Refinitiv:
EPS: Apple Inc. is at $1.24, or Rp 17,592.56, according to analyst estimates.
Revenue: The company was able to generate revenue of only US$83.36 billion, or the equivalent of Rp1.183 trillion.

Meanwhile, experts estimate it to be 84.85 billion USD, equivalent to 1,203,8 trillion IDR. Despite this, that earnings outperformed 29 percent year-on-year.
iPhone revenue: Device products pocketed by $38.87 billion, or the equivalent of 551.4 IDR
trillion), analysts and Wall Street estimates $41.51 or IDR 588.9 trillion. Despite
This value increased by 47 percent compared to the previous year.

Services Revenue: Analysts estimated at US$17.64 billion, or the equivalent of IDR 250.2 trillion.
Apple, $18.28 billion or Rp 259.3 trillion. succeeded in purchasing.
Other Product Revenue: Apple earned $8.79 billion, or Rp124.7 trillion.
Which analyst estimates 9.33 billion US dollars, equivalent to Rp 132.3 trillion. Although it was below the expert’s estimate, the value increased by 11.5 percent compared to the previous year.

Mac Revenue: Apple laptop products grew by $9.18 billion (vs. 130.2 trillion IDR), or 1.6 percent year-over-year. The figure is still below the estimate of 9.23 billion around Rp 130.9 trillion.
iPad revenue: Tab products increased 21.4 percent to US$8.25 billion or Rp 117.07 trillion. contributed. This achievement is much higher than analyst estimates of US$7.23 billion, or IDR 102.5 trillion.

Gross margin: The company pocketed 42.2 percent, as analysts expected.
Apple has not provided official guidance since the start of the pandemic. Cook aims for Apple to have solid annual revenue growth in the fourth quarter of December for sure.
In fact, Cook said, Apple has the potential to face worse supply constraints of more than US$6 billion, or the equivalent of Rp 85.1 trillion.
There was a hurdle in generating revenue in the third quarter. However, Apple is optimistic that the fourth quarter will be the largest in its history in terms of corporate revenue.

Lack of supply is a barrier
Apple CFO Luca Maestri iPad sales will decline year-on-year in the fourth quarter. Supply problems are a hindrance. It will grow for other product categories.
“So we finished about a month of the quarter. Covid-related production cuts have increased tremendously. The sawdust shortage continues,” Cook said.
Cook added that the supply issue is related to “old nodes” or chips on older chips. It’s not the technologically advanced processor at the heart of Apple devices.

The expected year-over-year sales growth shows that Apple is seeing much more demand for its newest product, the iPhone 13.
In the fourth quarter, Apple covers just a few days from the sale of the iPhone 13, which will end on September 25.
Apple is currently in the midst of massive growth as sales of iPhone, iPad and Mac exploded during the pandemic. Apple’s 2021 annual revenue increased by 33 percent compared to 2020. Total revenue reached US$366 billion compared to IDR 5,192.6 trillion.

Apple’s Strongest Sales
The strongest growth in Apple’s non-iPhone product category is in the service business. Includes App Store sales, music and video subscription services, ads, warranty extensions, and licenses.
Apple’s services are growing 26 percent each year. Apple’s CEO said earnings were higher than the company had expected.

Cook also said that Apple has 745 million paid subscriptions. This includes not only the Apple Music service, but also subscriptions through the Apple App Store.
“This [Apple’s services] has grown by 160 million year-over-year. That means it has increased fivefold in five years. So it’s a pretty big growth cycle,” he said.

Apple’s Mac hasn’t grown significantly. It is only increasing 1.6% per year. Excludes sales of the new MacBook Pro models announced in October.
Apple’s iPad grew 21 percent year-on-year due to supply constraints. Other product categories, which include Apple’s Apple Watch and AirPods models, rose 11 percent, even without new products. New product sales October month