Apple Inc (NASDAQ:AAPL) is continuing its descent on Friday after posting record numbers that were still below expectations.
Investors were also spooked by chief executive Tim Cook’s statement on supply chain troubles.
READ: Apple ‘very likely’ to face lawsuit – report
In a conference call, he said that these constraints were larger than expected and came at the cost of US$6bn.
Demand remained strong, but the eye-watering quarterly sales of US$83.4bn were slightly lower than Wall Street forecasts. iPhone sales missed expectations too at the US$38.8bn mark.
Shareholders are due to receive a US$0.22 per share dividend supported by free cash flow of US$93bn during the whole year.
Chief financial officer Luca Maestri noted that the quarter delivered new revenue records in all of its geographic segments and product categories despite widespread COVID-19 uncertainty.
“That is hard to do when the world is normal, let alone today. The incredible performance comes down to Apple’s nail-on-the-head new product launches,” echoed Sophie Lund-Yates, equity analyst at Hargreaves Lansdown.
However, some key questions remain.
“The group’s costs as a proportion of sales for its phones are increasing, suggesting it’s getting harder to stay ahead of the competition. This is by no means a close race at the moment, but as a wider trend it’s something to think about. Compared to less hardware-focused FAANG peers, Apple is also a lot more exposed to supply chain disruption,” she added.
“An extended duration of these problems will spell trouble, especially because the market is unforgiving when it comes to Apple’s performance. Add in questions from some shareholders about forced labour and carbon footprint concerns and it becomes clear that while the Apple is still plenty good enough to eat, there’s some potential for bruising.”
Shares lost 3% to US$147.51 in premarket trading.