Technologies
Apple warns of more supply chain woes after iPhone 13 drives revenue surge
The tech giant’s financial disclosures follow the release of new Mac computers, iPads and the iPhone 13.

Apple warned on Thursday that it continues to struggle with supply chain disruptions as it ramps up for an expected holiday shopping crunch following the release of its iPhone 13, new iPads, Apple Watches and Mac computers.
Apple said that iPhone sales jumped nearly 47% in the three months ended Sept. 25, as consumers snatched up the new iPhone 13. But Apple said its sales could have even been higher if not for the continued spread of the coronavirus pandemic, which has disrupted businesses across the globe. For Apple that led to a more limited number of products it could make and ship to customers.
Apple CEO Tim Cook said the company missed out on as much as $6 billion in revenue as a result of constrained supplies, primarily driven by silicon chip shortages and manufacturing disruptions. «We are optimistic about the future, especially as we see strong demand for new products,» he told analysts on a conference call.
Still, even though the company expects supply constraints to continue through the holidays, CFO Luca Maestri said he expects Apple to set new sales records during the holiday shopping season.
Apple’s financial disclosures add to a growing tapestry of information about the world economy amid the pandemic. The pandemic upended what turned out to be fragile supply chains around the globe when it ripped through manufacturing and shipping hubs at the beginning of last year. Now, as the holiday shopping season begins, questions remain about potential supply shortages.
In response, large retailers such as Target, Best Buy, Amazon and even Macy’s have begun rolling out early Black Friday deals before Halloween in an effort to draw people to shop now.
As for Apple, many of its newly launched products are already on back order, with the company quoting shipping times for new iPhones into November and new Macs into December. That all speaks to how much Apple’s struggled to keep up with demand.
It also likely helps that Apple’s fiscal fourth quarter included launches for highly anticipated products, including a more rugged $399 Apple Watch Series 7, updated $329 entry-level iPad, and redesigned $499 iPad Mini. The biggest release though was the series of iPhone 13 models, starting at $699.
The company said it tallied $38.8 billion in iPhone sales, up from $26.4 billion the same time a year earlier. Some of that can be attributed to quirks of the calendar. Apple released its iPhone 12 last year a few weeks later than usual, and as a result, its iPhone sales took a hit. This year, Apple stuck to its typical schedule of releasing new iPhones in September.
All told, Apple said it notched profits of $20.5 billion, up 62% from the same last year. That translates to $1.24 per share in profit, off $83.36 billion in overall revenue, which itself was up more than 28% from the $64.7 billion reported last year. But it was below analysts’ average estimates, which were $1.24 per share in profits on nearly $84.9 billion in revenue, according to surveys published by Yahoo Finance.
«It’s difficult to predict COVID,» Cook said. He added that he believes Apple’s still in a «materially better» position than it was earlier this year.
Apple’s stock closed regular trading up 2.5% to $152.57 per share. The stock’s risen nearly 18% so far this year, valuing the company at more than $2.5 trillion.
Supply shortages
The tech industry’s supply issues stretch back more than a year. Initially, industry executives said, many companies lowered orders for products out of fear for decreased demand when the pandemic was just starting last year. That, mixed with waves of illness and manufacturing shutdowns, led to supply shortages as people ramped up online shopping.
Chip shortages have extended well past the tech industry too. It’s kept Sony from being able to produce enough of its PlayStation 5 consoles to meet demand. But it’s also kept Ford from being able to make its F-150 trucks.
Read more: Why your iPhone may never be «Made in America»
Apple’s Cook said that most of the supply shortages it’s facing are among older chips, though the company didn’t say which products or chips in particular it’s referring to. But he did say that getting enough newer chips isn’t as much of an issue.
«What we’re doing is working with our partners, and making sure that they have supply,» he said. Apple’s reworked some of its manufacturing, he added, to have as many products ready for chips as possible. That way, a chip can roll off the manufacturing line, into a product and shipping «as fast as possible.»
By the numbers
Apple said it set a record for Mac sales at nearly $9.2 billion, up slightly from the $9 billion a year earlier, despite the struggles it’s faced to get products to customers.
Apple said its success is primarily driven by the company’s new M1 chips, microprocessing brains designed by the teams that work on the iPhone. These chips, which were first released last year, have been well received by reviewers, who say they’re able to perform well when compared to previous Mac computers. Apple had relied on Intel chips to power its computers for about 15 years.
«After nearly a year, I can say the Intel-to-M1 transition has been relatively smooth,» CNET reviewer Dan Ackerman wrote of the new Mac computers. «The best thing I can say about the M1 chip is that it’s largely transparent to the everyday MacBook Air user, which is exactly what you want from a big under-the-hood change like this.»
Apple’s iPad sales jumped 21% to $8.2 billion. Its segment called «wearables, home and accessories,» which includes the HomePod Mini and Apple Watch, jumped more than 11% to nearly $8.8 billion. Services revenue, including from the company’s $5-a-month Apple TV Plus service, rose 26% to nearly $18.3 billion.
Apple said nearly a third of its revenue now comes from developing countries. Sales in Greater China nearly doubled to $14.5 billion from the year earlier, while sales in the Americas jumped 20% to $36.8 billion, Europe rose 23% to $20.8 billion, and Japan ticked up 19%. Revenue from the rest of Asia Pacific rose 25% to $5.2 billion.
Technologies
When Will You See AI-Generated Content on Netflix? It’s Possible You Already Have
A graphic-novel adaptation from Argentina already used AI to generate final footage, Netflix’s CEO says.

How soon will it be before Netflix subscribers begin to see movies and TV show that were made with generative AI technology? According to CEO Ted Sarandos, it’s already happened.
In a video conference call after Netflix’s earnings were announced on July 17, Sarandos took questions, one of which was focused on when and how the streaming company will generate content with artificial intelligence tools.
Surprisingly, Sarandos said the company already did it, on an Argentinian sci-fi show called El Eternauta, a graphic-novel adaptation known as The Eternaut in English-speaking markets. For a scene showing a building collapsing in Buenos Aires, Netflix’s tech team worked with the filmmakers to generate AI footage that was used as final footage.
Sarandos revealed that this was the first time that Netflix has used generative AI for final footage in any TV show or movie it has produced.
«We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper,» Sarandos said in the call. «Real people doing real work with better tools,» he added.
The Netflix chief said that the show’s budget would never have allowed footage like that to be created with traditional visual effects tools and workflows, and that it was produced 10 times faster than it would have been traditionally. «They were able to achieve an amazing result with remarkable speed,» Sarandos said.
Filmmakers, he said, are already using AI for previsualization and shot planning as well as visual effects such as de-aging. The company also plans to keep expanding its use of AI for keep improving recommendations and other features offered to subscribers.
El Eternauta has already been renewed for a second season and received positive reviews.
Technologies
Google Down: Services Experiencing ‘Disruption’ Include Gmail, Drive and Workspace
Technologies
Donkey Kong Bananza Is Satisfyingly Smashing Madness
DK is exactly what the Switch 2 needed to give gamers a glimpse of what Nintendo may have coming.

Summers are about big, fun, mind-numbing movies. Great escapes in the best of ways. I need that right now, and maybe you do too. I’m happy to say that Donkey Kong Bananza is here to whisk you off to multilevel worlds of satisfyingly smashing madness, to cheer you up and give you an excuse to punch the heck out of things. It’s a game my 12-year-old son has loved playing along with me, although I’ve had to find ways to wrestle the game back to play for myself.
I was wowed by Bananza during an early preview a few weeks ago, but after a few weeks of play at home, it’s even better. This is my favorite Switch game since… I have no idea when. Maybe since Super Mario Odyssey.
The catch is that you need the new Nintendo Switch 2 console to play it. Donkey Kong Bananza won’t work on the original Switch — or on any other gaming device. Of course, that’s the whole idea.
Nintendo needed home run games for its new Switch 2 console, and it hit a grand slam with the new Donkey Kong. I still haven’t finished the game, but I already know it’s the best reason to buy a Switch 2 yet.
Donkey Kong Bananza is available for $70 from Nintendo.com and other retailers. We’re also keeping track of Nintendo Switch 2 restocks if you’re still seeking a console.
Smashing story with co-op options
In a lot of ways, Bananza feels like Zelda and Mario met in the middle.
The story’s weird, but what Mario (or Nintendo) game isn’t? Donkey Kong’s world has been threatened by a sinister bunch of apes, after a large meteor knocks a mining company deep into the planet’s core. The adventure involves diving down into those sublevels — it’s Donkey Kong Hollow Earth, or Journey to the Center of the Kongiverse. The big difference in this game is that you can destroy just about anything, burrowing and tunneling throughout the game’s large 3D maps.
Technically, this isn’t a true collaborative co-op game, but there’s a mode where Pauline — a young girl who mysteriously fell from the sky and becomes Donkey Kong’s friend — can throw her voice, literally, at things to destroy them. A second player takes over as Pauline and aims and shoots words at enemies, and can absorb material powers from nearby rocks and objects. It’s more engaging than the hat-throwing co-op in Odyssey.
You can Game Share Bananza with a local Switch 2 or Switch 1 in co-op mode to play on two screens, or just play on one. For this review, I wasn’t allowed to Game Share to a second Switch.
The Mario mojo
Bananza is made by the Super Mario Odyssey team, and its 3D platforming feels like a Mario sequel. You can wander through large but still self-contained sublevels that remind me of the Kingdoms in Super Mario Odyssey. As you descend to new levels, the characters you meet and the level’s game mechanics shift up a bit. The levels aren’t as drastically different or quite as weirdly whimsical as the ones in Odyssey, but they feel a lot busier.
Jumping and punching are the main ways to control things, but there are plenty of other moves. There’s also a skill tree of abilities to unlock and power up, which uses points you accumulate by collecting giant, crystal bananas (just go with it). Donkey Kong can also buy new outfits, much like Mario Odyssey, but these outfits (or pieces of outfits) give extra perks, like cold resistance or faster energy recovery.
Each of the levels has goals and sub-bosses to fight, but also secret subchallenges to discover — some of them 3D, some 2D side-scrolling. There are other things to find, in every direction, on any potential hillside or surface, if you just pummel your fists and dig. The free-digging usually involves either finding more crystal bananas or various-sized fossils, which can be collected and redeemed for costumes. There’s gold to accumulate, too, which acts as general currency. But even as I rush to the next goal on any level, I’m equally tempted to just start digging around and see what’s going on somewhere else.
The Zelda zeitgeist
Here’s where Bananza really starts to feel like a lower-key Zelda game, especially when it comes to finding characters and following sub-missions. You can talk to lots of the strange characters in each sublevel, and some share important news. You’ll get directed to a particular goal, and on a 3D map, you can track your progress or warp to other spots. But as the game’s progress starts to wind up and down through sublevels, it begins to feel a lot more quest-y than any Mario game.
Zelda: Tears of the Kingdom kept coming to mind for me. That game’s vast overworld and underworld — and its various ways of finding passages between — is very much like Bananza. Also, like recent Zelda games, you can climb just about anywhere (or surf chunks of rock you rip out of the ground). The outfit perks feel Zelda-like, and so does the game’s sense of real-time, chaotic physics. Some puzzles involve understanding the environment and manipulating it, much like I did many times in Tears.
There’s also a sense of persistence in Bananza. You can create little home bases that let you rest up and change outfits. You’ll meander off and come back to locations. Mario Odyssey had some of this too, but Bananza feels more lived in.
Unlike recent Zeldas, though, this game’s challenges are relatively contained. You won’t have long lists of subquests or stories to lose track of. After spending months away from Zelda, and coming back not remembering what I was meant to do next, I appreciate Bananza’s simpler vibe.
A whole new yet familiar feel
Most importantly, Bananza just feels fresh. I get a little tired, sometimes, of diving back into new Zeldas and Marios that layer legends on top of legends. Donkey Kong’s universe is different from previous Kong games, especially the giant, wrinkled Elders who preside over subworlds like spirits, granting extra transformation powers. This is where the «Bananza» name comes in.
Accumulating enough gold triggers a chance to become a spirit animal. There’s a Bananza version of Kong that has stronger punches, an ostrich that can fly and drop egg bombs, and a zebra that can run fast over ice and water. (I haven’t unlocked any others yet.)
After a week-plus of playing, I’m still consistently surprised by what I’m encountering. But I’m also finding it familiar and comfortable, just like a big summer movie. And that’s what this is: Nintendo’s big blockbuster summer game, one of the best I can remember. Something I don’t want to end, and I’m glad to have more to explore.
I’m also surprised by other things: there’s no online mode, which I don’t mind but feels surprising after Super Mario Wonder’s clever additions. The game download size is only 8GB, shockingly small compared to Switch 2 launch games like Cyberpunk 2077, which were nearly 60GB. I was getting worried about how much storage space I’d have on the Switch 2 over time, but if more games are like Bananza, things will be OK.
My youngest son was instantly interested in Bananza, so much so that he didn’t want me playing without him. I had to, though, so I could carve enough time out to play. We’re going to backtrack and play again, and he’ll start playing, too. Will Bananza feel as replayable and infinitely fun as many of Nintendo’s best? I can’t entirely tell yet, but there’s already so much I’ve skipped over in so many levels, I don’t doubt it. There’s also a 3D art mode thrown in as a bonus where you use the Joy-Cons to sculpt and paint ape heads and bunches of bananas.
Donkey Kong makes it worth buying a Switch 2
Bananza is a great sign for where Nintendo’s heading with the Switch 2. It feels like a more evolved version of many Switch games of the past, but just like Mario Kart World, the other major Switch 2 exclusive, it takes the good ideas even further. Bananza is also an extension of Nintendo’s universe, including the Super Mario Movie, which has a Donkey Kong that looks like this one, and Super Nintendo World, which has a Donkey Kong land, too. And yes, Super Nintendo World’s Donkey Kong Power-Up bands even work like Amiibo with this game.
This is a game as vibrant and kinetic as Sony’s fantastic Astro Bot and similarly full of things to search for and do. In comparison, Super Mario Odyssey now seems surprisingly quiet and chill.
And yes, this game is worth getting a Switch 2 for — that was the idea all along. It’s nice to see that Nintendo really pulled it off, though. Combined with Mario Kart World, this is a heck of a one-two punch. I’d still love a proper 3D Mario sequel someday, but Bananza is practically that right now.
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