Apple says Covid-19 Lockdown Threatens to Disrupt Sales
Apple Inc warned that the resurgence of Covid-19 in China could hinder sales of around $8 billion this quarter. This is a setback after seeing supply chain improvements in the first three months of this year.
iPhone maker guidance came shortly after the company reported one of the best quarters in its 46-year history. The news sent the company's stock on a bumpy ride in aftermarket trading-first up 2% and then down more than 5%.
Many investors anticipate an explosion from January to March, more to CEO Tim Cook's clues about high inflation, the lockdowns due to the pandemic in China, and the outlook for the war in Ukraine.
Apple’s chief financial officer Luca Maestri said the limit would reduce sales by $4 billion to $8 billion in the three months to June. The lockdowns can also weaken demand in China.
iPhone sales increased 5% from the previous quarter to $50.6 billion. Analysts expected 1% growth. The company no longer announces the number of smartphones that make up about half of Apple's annual sales.