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.

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

New California Law Wants Companion Chatbots to Tell Kids to Take Breaks

Gov. Gavin Newsom signed the new requirements on AI companions into law on Monday.

AI companion chatbots will have to remind users in California that they’re not human under a new law signed Monday by Gov. Gavin Newsom.

The law, SB 243, also requires companion chatbot companies to maintain protocols for identifying and addressing cases in which users express suicidal ideation or self-harm. For users under 18, chatbots will have to provide a notification at least every three hours that reminds users to take a break and that the bot is not human.

It’s one of several bills Newsom has signed in recent weeks dealing with social media, artificial intelligence and other consumer technology issues. Another bill signed Monday, AB 56, requires warning labels on social media platforms, similar to those required for tobacco products. Last week, Newsom signed measures requiring internet browsers to make it easy for people to tell websites they don’t want them to sell their data and banning loud advertisements on streaming platforms.

AI companion chatbots have drawn particular scrutiny from lawmakers and regulators in recent months. The Federal Trade Commission launched an investigation into several companies in response to complaints by consumer groups and parents that the bots were harming children’s mental health. OpenAI introduced new parental controls and other guardrails in its popular ChatGPT platform after the company was sued by parents who allege ChatGPT contributed to their teen son’s suicide.

«We’ve seen some truly horrific and tragic examples of young people harmed by unregulated tech, and we won’t stand by while companies continue without necessary limits and accountability,» Newsom said in a statement.

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One AI companion developer, Replika, told CNET that it already has protocols to detect self-harm as required by the new law, and that it is working with regulators and others to comply with requirements and protect consumers.

«As one of the pioneers in AI companionship, we recognize our profound responsibility to lead on safety,» Replika’s Minju Song said in an emailed statement. Song said Replika uses content-filtering systems, community guidelines and safety systems that refer users to crisis resources when needed.

A Character.ai spokesperson said the company «welcomes working with regulators and lawmakers as they develop regulations and legislation for this emerging space, and will comply with laws, including SB 243.» OpenAI spokesperson Jamie Radice called the bill a «meaningful move forward» for AI safety. «By setting clear guardrails, California is helping shape a more responsible approach to AI development and deployment across the country,» Radice said in an email.

One bill Newsom has yet to sign, AB 1064, would go further by prohibiting developers from making companion chatbots available to children unless the AI companion is «not foreseeably capable of» encouraging harmful activities or engaging in sexually explicit interactions, among other things.

Technologies

Slack Is Transforming Slackbot Into an AI Assistant

Enhancements will make the simple bot act more like an AI chatbot.

Slackbot, the assistant within the team communication platform Slack, is getting AI enhancements and integrations with other AI chatbots to become more agentic, Slack said in a presentation at Dreamforce, a tech conference in San Francisco, on Monday.

Slackbot works as a simple assistant, sending people reminders, notifications or updates about their colleagues. It isn’t conversational in the same way ChatGPT is. With these AI enhancements, Slackbot will soon function more like an AI chatbot, able to do things on a person’s behalf.

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Enterprise users will soon be able to converse with Slackbot, asking it to help with projects or analyze documents. Slack will also integrate with Google Drive, One Drive, and Salesforce. OpenAI, Anthropic, Perplexity, and others are bringing their agents into Slack as well. For example, you can ask @Claude to do a web search or scan your workspace to find new insights.

At the moment, the AI version of Slackbot is in beta and limited to 70,000 users. However, it will be released to all users in January 2026. Slack will then roll out the feature broader later this year. Companies can also turn off Slackbot.

A representative for Slack referred reporters to its blog post.

The AI-ification of apps has been a common trend since the release of ChatGPT. Apps like Duolingo, Canva, Phot,oshop, and others have all added AI features to make things easier for users and to attract investor dollars. Slack’s biggest competitor in the space, Microsoft Teams, has been integrating more AI features recently.

Technologies

Today’s NYT Connections Hints, Answers and Help for Oct. 14, #856

Here are some hints and the answers for the NYT Connections puzzle for Oct. 14, No. 856.

Looking for the most recent Connections answers? Click here for today’s Connections hints, as well as our daily answers and hints for The New York Times Mini Crossword, Wordle, Connections: Sports Edition and Strands puzzles.

NYT Connections fans, we’re used to this. The purple category today requires you to remove the starting letter of four words, and spot their connection once you’ve done that. If you need help, you’re in the right place. Read on for clues and today’s Connections answers.

The Times now has a Connections Bot, like the one for Wordle. Go there after you play to receive a numeric score and to have the program analyze your answers. Players who are registered with the Times Games section can now nerd out by following their progress, including the number of puzzles completed, win rate, number of times they nabbed a perfect score and their win streak.

Read more: Hints, Tips and Strategies to Help You Win at NYT Connections Every Time

Hints for today’s Connections groups

Here are four hints for the groupings in today’s Connections puzzle, ranked from the easiest yellow group to the tough (and sometimes bizarre) purple group.

Yellow group hint: Dazzle, entrance.

Green group hint: Short version.

Blue group hint: Stop!

Purple group hint: Not humans, and remove one letter.

Answers for today’s Connections groups

Yellow group: Captivate.

Green group: Summary.

Blue group: Halt.

Purple group: Animals minus starting letter.

Read more: Wordle Cheat Sheet: Here Are the Most Popular Letters Used in English Words

What are today’s Connections answers?

The yellow words in today’s Connections

The theme is captivate. The four answers are absorb, engage, hold and occupy.

The green words in today’s Connections

The theme is summary. The four answers are brief, digest, outline and review.

The blue words in today’s Connections

The theme is halt. The four answers are check, curb, staunch and stem.

The purple words in today’s Connections

The theme is animals minus starting letter. The four answers are anther, easel, hark and lama. (Panther, weasel, shark and llama. Yes, «anther» is a real word.)