Apple sales and profit top estimates as hit from chip shortages eases - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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Apple Inc on Thursday reported record sales in the holiday quarter, beating estimates due to high iPhone demand and growing subscribers, even as a chips shortage that it said has begun easing cost it over $6 billion in revenue.

But they have been down 10% this year, in line with the broader market, as investors reconsider stocks that have soared during the pandemic and shift funds toward safer assets.

Demand during the holiday quarter outstripped supply in line with Apple’s expectations, Chief Financial Officer Luca Maestri told Reuters in an interview, noting that the effect was more than $6 billion in lost sales.“The level of constraint will depend a lot on other companies, what will be the demand for chips from other companies and other industries. It’s difficult for us to predict, so we try to focus on the short term,” he said.

Profit was $34.6 billion, or $2.10 per share, compared with analysts’ expectations of $31 billion and $1.89 per share. Sales for Macs rose 25% to $10.9 billion compared with estimates of $9.5 billion, and sales for accessories rose 13% to$14.7 billion compared with estimates of $14.6 billion.Apple is trading at 27 times expected earnings over the next 12 months.

 

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