Shares of Apple (AAPL) are down about 2% in premarket trading after the consumer electronics
giant warned that ongoing supply constraints could cost it $8 billion U.S. in lost revenue this
year.
The negative outlook overshadowed what was a solid first quarter print from Apple, which
announced that its revenue grew nearly 9% year over year in the quarter ended March 31.
In a conference call with analysts, Apple Chief Financial Officer Luca Maestri warned of several
challenges in the current second quarter, including supply constraints related to the pandemic
that could hurt sales by as much as $8 billion U.S. The tech giant also warned that demand in
China was being sapped by renewed COVID-19 lockdowns.
Apple’s earnings per share in the first quarter were $1.52 U.S. compared to $1.43 U.S. that had
been expected. Revenue totaled $97.28 billion U.S. versus $93.89 billion U.S. estimated, up
8.59% year over year.
iPhone revenue amounted to $50.57 billion U.S., which was better than the $47.88 billion U.S.
expected by analysts. Other Products revenue amounted to $8.81 billion U.S. compared to
$9.05 billion U.S. expected on Wall Street, a 12% year over year gain.
Apple did not provide a forecast for the current second quarter. The company hasn’t provided
official revenue guidance since February 2020, citing uncertainty caused by the pandemic.
In addition, Apple said that its board of directors has authorized $90 billion U.S. in share
buybacks, maintaining its pace as the U.S. public company that spends the most buying its own
shares. It spent $88.3 billion U.S. on buybacks in 2021.