Apple's Supply Chain Bottleneck Threatens Rally
Apple's stock rally has been driven by record revenue and strong sales of its iPhone and Mac products, but the company faces a challenge in meeting demand due to supply chain constraints.
The latest quarterly results show that Apple's revenue hit a record $109.4 billion, up 16% from a year earlier, with iPhone revenue rising 22% to $54.3 billion and Mac revenue increasing by 29% to $10.4 billion.
Apple executives attribute the strong sales to enthusiasm around new software features, but also acknowledged that the company has less flexibility in its supply chain than usual and expects production bottlenecks to worsen in the September quarter.
This means that Apple's guidance for revenue growth of just 9% to 11% for the current quarter may not reflect the actual demand, as the company could sell more if it could build more.