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Apple Expects Supply Shortages to Slash Sales by Up to $8 Billion

  • New Covid-19 lockdowns in China are roiling supply chain
  • Dour outlook follows record sales for a non-holiday quarter
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WATCH: Apple’s profit beats estimates.Source: Bloomberg
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Apple Inc. shares slid after the iPhone maker predicted that supply constraints would cost $4 billion to $8 billion in revenue during the current quarter, casting a pall on record-setting results that the company just reported. 

Covid restrictions, which have swept China in recent weeks, will take a toll on the June quarter, Apple said during a conference call Thursday. The fiscal second quarter’s sales and profit had topped analysts’ estimates, fueled by strong demand for the iPhone and digital services, and the company announced $90 billion in new stock buybacks. The shares slipped less than 1% as the market opened in New York on Friday.