Apple takes $6bn revenue hit from supply chain strains

PALO ALTO, U.S.-- Apple reported its highest-ever September quarterly revenue on Thursday, driven by sales of 5G iPhones, especially in China, but the figure would have been $6 billion higher if not for the supply chain bottlenecks plaguing the global tech industry.

"We estimate these [supply chain] constraints had around a $6 billion revenue dollar impact driven primarily by industrywide silicon shortages and COVID-related manufacturing disruptions," Apple CEO Tim Cook said on an earnings call.

For the three months ended Sept. 25, Apple's total revenue grew 29% on the year to reach $83.4 billion but missed Wall Street's forecasts. Its shares fell in after-hours trading.

Greater China, which includes mainland China, Hong Kong and Taiwan, reported the highest revenue growth of all regions, with an 83% year-on-year jump to $14.6 billion. Global iPhone sales increased 47% to $38.9 billion. But the company also saw growth in all its other product categories, with Macs and services recording all-time high revenue.

Net income in the quarter was $20.6 billion, up 62%.

The strong year-on-year growth around the world was partly due to COVID-19 lockdowns and the delay of a new iPhone launch last fall, which hit the company's revenue hard at the time.

Apple started shipping its latest iPhone 13 on Sept. 24, but buyers are facing longer-than-expected delivery times due to manufacturing delays caused by the COVID wave in Vietnam and the U.S. tech giant's deployment of a new camera feature, Nikkei Asia previously reported.

"So we finished about a month of the [December] quarter, the COVID-related manufacturing disruptions have improved greatly," Cook told CNBC. "The chip shortages linger on."