Apple Inc. (AAPL) is off to a good start in 2022. The iPhone maker beat financial expectations for the March quarter on Thursday. However, senior executives at the company warned of billions in additional costs due to several challenges in the near future.
The technology giant said the pandemic-related supply constraints and silicon shortages are affecting its ability to meet demand. The senior leadership expects these disruptions to affect its second-quarter sales by $4 billion to $8 billion, substantially higher than analysts’ expectations.
The upcoming supply-chain woes also overshadowed the latest quarterly performance and sent Apple shares down more than 2 percent in the extended hours on Thursday.
Apple booked a profit of $25 billion, or $1.52 per share, for the three months ended March 26, up from $23.6 billion, or $1.40 per share in the linked quarter of 2021. Total sales for the quarter also increased to $97.3 billion, from $89.6 billion in the year-ago quarter. The latest financial results were better than the consensus forecast of $1.42 per share for earnings and $94 billion for sales.
Apple’s flagship iPhone business brought $50.6 billion in sales, compared to $47.9 billion last year and above estimates of $48.4 billion. IPad sales decreased to $7.6 billion, from $7.8 billion last year, while Mac sales increased to $10.4 billion, from $9.1 billion.
Moreover, sales at the company’s wearables, home, and accessories segment increased to $8.8 billion in the quarter, from $7.8 billion in the same period last year. However, the results were marginally below analysts’ expectations of $8.9 billion.
In addition, Apple’s services business generated $19.8 billion in sales, up from $16.9 billion in the year-ago period and higher than the consensus forecast of $19.7 billion.
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