Apple (AAPL), the world’s largest consumer electronics company, reported better-than-expected March quarter results, but cautioned that Covid-related shutdowns in China will hurt its June quarter performance. Apple’s shares dropped after the news broke on Friday.
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Late Thursday, the Cupertino, Calif.-based corporation topped Wall Street’s expectations for its fiscal second quarter, which ended March 26. Apple, on the other hand, said that the current quarter’s revenue would be impacted by Chinese lockdowns to prevent the spread of Covid-19. Factory and retail closures have been reported across the country as a result of the impact.
On a conference call with analysts, Chief Financial Officer Luca Maestri noted, “Supply constraints caused by Covid-related delays and industrywide silicon shortages are impacting our ability to meet customer demand for our products.”
He continued, “These limitations are expected to be in the region of $4 billion to $8 billion, which is significantly higher than what we saw in the March quarter. Customer demand in China is being impacted by the Covid-related difficulties.”
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Apple’s stock is plummeting.
Apple stock plummeted 3.7 percent today to settle at 157.65 on the stock exchange. In general, stocks had a bad day.
After the results release, Morgan Stanley analyst Katy Huberty confirmed her overweight, or buy, rating on Apple stock. She did, however, lower her price target to 195 from 210.
“While management struck a more cautious tone given the uncertainty of Covid lockdowns in China and persistent supply difficulties,” she wrote in a note to clients, “underlying demand rhetoric was more encouraging.” “Apple remains a beacon of stability in a market ravaged by various difficulties, and we continue to regard Apple as our top IT hardware option for 2022.”
Piper Sandler is an analysis firm. With a price objective of 195, Harsh Kumar maintained his overweight rating on Apple stock.
In a note to clients, Kumar wrote, “Even Apple is not immune to the geopolitical, Covid, and supply chain headwinds across the globe.” “However, Apple continues to set records across the board in terms of most products and services.”
Strong iPhone, services, and Mac computer sales boosted Apple’s March-quarter profits.
We were the ones that uncovered this information. The reader should be aware that we obtained this information from journalists and other online sources, as well as our correspondents and other jeanue sources.
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