Apple Expects Supply Constraints to Continue in Q3 2022
Apple CFO Luca Maestri said that Covid disruptions in China and silicon shortages are making it difficult to make enough product to satisfy customer demand.
The supply constraints will cost Apple $4 to $8 billion depending on how long it takes suppliers in China to get back up and running. According to Apple CEO Tim Cook, the supply issues are all centered on the Shanghai corridor, and while almost all factories are now reopened, it will take some time for them to ramp back up to standard output levels.
As of now, the supply issues have primarily affected iPads and the higher-end MacBook Pro models. Cook says that going forward, most product categories will be impacted, and this will ultimately affect Apple’s June quarter revenue.
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