Apple (AAPL) CEO Tim Cook confirms chip shortage will affect next quarter's iPhone & iPad sales

Tim Cook shares that Apple will be one of the many companies suffering from chip shortages this year.

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Apple reported its Q3 2021 earnings earlier today, showing a strong quarter for the tech company. However, despite the reports of success, a sentiment shared by Apple CEO Tim Cook has Apple (APPL) stock on the decline. While speaking to analysts, Tim Cook stated that the ongoing chip shortage will have an impact on iPhone and iPad sales this year.

It was during a call with analysts that Apple CEO Tim Cook stated that the company is facing issues thanks to the ongoing shortage of silicon/computer chips. He went as far as to state that iPhone and iPad sales will suffer this fall as a result of this ongoing shortages. Apple is just one of many companies in the tech and entertainment industry to see major problems thanks to chip shortages.

Not only did Tim Cook state that the chip shortages will hurt iPhone and iPad sales later this year, he states that it’s already hurt the company’s previous business. “The shortage primarily affected Mac and iPad,” Tim Cook said when speaking to CNBC. “We had predicted the shortages to total $3 to $4 billion. But we were actually able to mitigate some of that, and we came in at the lower than the low-end part of that range.”

Apple had braced for chip shortages to hurt its business this year, but was able to outperform its expectations, as evident in its Q3 2021 earnings. With that in mind, CEO Tim Cook is certain that the ongoing shortages will hurt iPhone and iPad sales this fall. Cook’s mention of iPhone sales seems to indicate that Apple may be launching a new entry in the iPhone line alongside the new iPads later this year.

Contributing Editor

Donovan is a young journalist from Maryland, who likes to game. His oldest gaming memory is playing Pajama Sam on his mom's desktop during weekends. Pokémon Emerald, Halo 2, and the original Star Wars Battlefront 2 were some of the most influential titles in awakening his love for video games. After interning for Shacknews throughout college, Donovan graduated from Bowie State University in 2020 with a major in broadcast journalism and joined the team full-time. He is a huge Star Wars nerd and film fanatic that will talk with you about movies and games all day. You can follow him on twitter @Donimals_

From The Chatty
    • reply
      July 28, 2021 9:42 AM

      Haha, oh fuck. Here we go again. Another GPU/CPU cluster fuck with people falling over themselves to get an order in.

      • reply
        July 28, 2021 10:15 AM

        Ehhh the big thing with Apple is you can still order it, you just wait to get it. It took two and a half weeks for me to get my 12.9 m1 iPad when I ordered it. It took my wife 3 weeks for her m1 iMac. Apple has a very good pre-order/order system. Possibly the best in the industry. So, while shortages will impact sales because it means carriers and third party resellers will have fewer on hand initially, it won’t impact sales direct through Apple aside from maybe waiting a few weeks for delivery.

        Even if you do trade in with Apple they time it so trade in kit ships after your order ships, so you don’t have any downtime transitioning between devices.

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