- Apple expects fiscal Q4 sales of $111.69 billion to $113.74 billion, below the $114.84 billion Wall Street estimate, with revenue growth projected at 9% to 11%.
- Management attributed the constraints to stronger-than-expected iPhone and Mac demand and limited flexibility to secure advanced semiconductor nodes.
- Apple shares fell nearly 10% after the weak forecast, and the decline would erase nearly $500 billion of market value if sustained.
Quotes
“The root cause of it is not a regular supply issue. It's a demand forecast issue, to be candid, where the iPhone and the Mac are both doing remarkably better than we thought they would do”
“We've got a quarter that we're going to be scrambling on the supply side, essentially.”
“100-year flood.”