Apple Earnings: Will Supply Shortages Hurt Sales?
One thing is almost certain about Apple's (NASDAQ: AAPL) fiscal third quarter: Part shortages and logistics challenges likely put a dent in the tech giant's sales. But the question is about the extent of the damage. Apple has experienced significant supply chain challenges for a while now -- and management said on Apple's fiscal second-quarter earnings call that shortages would have a "substantially" worse impact in fiscal Q3 than the prior quarter. It's possible, however, that the negative impacts on Apple's business from the supply chain proved to be worse or more moderate than anticipated.
Whatever the case, we'll have a better idea of how Apple is faring later this month. The company is scheduled to report its fiscal third-quarter results on July 28.
To get some more context ahead of the iPhone maker's upcoming earnings report, investors can take a close look at Apple's results and commentary from management during the company's last earnings call. On it, Apple didn't provide any specific revenue guidance for the quarter due to "continued uncertainty around the world in the near term," explained CFO Luca Maestri. But he did provide some "directional insights" based on recent trends at the time of the call. Specifically, Maestri said he expected supply chain disruptions to negatively impact revenue by $4 billion to $8 billion. Additionally, the CFO said Apple anticipated softer demand in China due to COVID-related disruptions. A pause in Apple's sales in Russia is also expected to have a slightly negative impact on the quarter.
Source Fool.com
