Apple has cautioned investors that it expects significant supply chain challenges to impact the availability of its popular devices, including the iPhone, iPad, and Mac. Despite reporting a 16% revenue increase to $109 billion and a 26% rise in profits, the company’s stock fell by more than 7% in after-hours trading following the announcement.
Outgoing CEO Tim Cook attributed the anticipated shortages to unexpectedly high consumer demand rather than traditional supply chain failures. While Mac computers have already faced availability issues, Cook noted that these constraints are expected to broaden. The company is currently navigating limitations in obtaining advanced microprocessors, which are essential for its high-performance devices.
In other developments, Apple is preparing for the public release of an updated version of its AI assistant, Siri. Cook described the technology as a strategic asset, noting that the company is currently in discussions with European Union regulators to ensure a simultaneous global rollout.
Conversely, Amazon experienced a positive market reaction, with shares rising 10% after the company reported strong financial results. Amazon’s cloud computing arm, Amazon Web Services (AWS), saw 37% growth, marking its strongest performance in four years. While Amazon reported negative free cash flow of $7.6 billion due to heavy investment in artificial intelligence, analysts noted that the company's infrastructure spending appears to be effectively aligning with market demand.
Source: BBC News
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