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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

iOS 17 Cheat Sheet: Your Questions on the iPhone Update Answered

Here’s what you need to know about new features and upcoming updates for your iPhone.

Apple’s iOS 17 was released in September, shortly after the company held its Wonderlust event, where the tech giant announced the new iPhone 15 lineup, the Apple Watch Series 9 and the Apple Watch Ultra 2. We put together this cheat sheet to help you learn about and use the new features in iOS 17. It’ll also help you keep track of the subsequent iOS 17 updates.

iOS 17 updates

Using iOS 17

Getting started with iOS 17

Make sure to check back periodically for more iOS 17 tips and how to use new features as Apple releases more updates.

17 Hidden iOS 17 Features You Should Definitely Know About

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Technologies

Get Ready for a Striking Aurora That Could Also Disrupt Radio Communications

Don’t expect the storm to cause a lingering problem, though.

A geomagnetic storm is threatening radio communications Monday night, but that doesn’t mean you should be concerned. In fact, it may be an opportunity to see a colorful aurora in the night sky.

The National Oceanic and Atmospheric Administration has issued a geomagnetic storm watch after witnessing a coronal mass ejection from the sun on Saturday. The watch, which was issued over the weekend and will expire after Monday, said the onset of the storm passing over Earth on Sunday night represented a «moderate» threat to communications. As the storm continues to pass through, it could deliver a «strong» threat on Monday night that could cause radio communications to be temporarily disrupted during the worst of it.

Even so, NOAA said, «the general public should not be concerned.»

A coronal mass ejection occurs when magnetic field and plasma mass are violently expelled from the sun’s corona, or the outermost portion of the sun’s atmosphere. In the vast majority of cases, the ejection occurs with no real threat to Earth. However, in the event the ejection happens in the planet’s direction, a geomagnetic storm occurs, and the Earth’s magnetic field is temporarily affected.

In most cases, geomagnetic storms cause little to no disruption on Earth, with radio communications and satellites affected most often. In extreme cases, a geomagnetic storm can cause significant and potentially life-threatening power outages — a prospect that, luckily, the planet hasn’t faced.

Switching poles

Every 11 years, the sun’s magnetic poles switch, with the north pole and south pole swapping positions. During those cycles, the sun’s activity ramps up as it gets closer to pole-switching time. The height of its activity is called solar maximum, and scientists believe we either may be entering the solar maximum or may be already in it.

During periods of heightened solar activity, sunspots increase on the sun and there’s an increase in coronal mass ejections, among other phenomena. According to NOAA, solar maximum could extend into October of this year before the sun’s activity calms and it works towards its less-active phase, solar minimum.

Even when geomagnetic storms hit Earth and disrupt communications, the effects are usually short-lived. Those most affected, including power grid operators and pilots and air traffic controllers communicating over long distances, have fail-safe technologies and backup communications to ensure operational continuity.

But geomagnetic storms aren’t only about radios. In most cases, they also present unique opportunities to see auroras in the night sky. When the storms hit, the plasma they carry creates a jaw-dropping aurora, illuminating the night sky with brilliant colors. Those auroras can be especially pronounced during the most intense phases of the storm, making for nice stargazing.

If you’re interested in seeing the aurora, you’ll need to be ready. The NOAA said the «brunt of the storm has passed» and even if it lingers into Tuesday, there won’t be much to see after Monday night. 

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Technologies

Last Total Solar Eclipse for 20 Years Is Coming: How to See and Photograph It

It’s your last chance until 2044.

Get your eclipse glasses ready, Skygazers: the Great American Eclipse is on its way. On April 8, there’ll be a total eclipse over North America, the last one until 2044.

A total solar eclipse happens when the moon passes between the Earth and the sun, blocking the sun and turning an otherwise sunny day to darkness for a short period of time. Depending on the angle at which you’re viewing the eclipse, you may see the sun completely shrouded by the moon (called totality) or some variation of it. The more off-angle you are and the further you are from the path of the eclipse, the less likely you’ll be to see the totality.

The 2024 total solar eclipse will happen on Monday, April 8. The Great American Eclipse will reach the Mexican Pacific coast at 11:07 a.m. PT (2:07 p.m. ET), and then traverse the US in a northeasterly direction from Texas to Maine, and on into easternmost Canada. If you want a good look at it, but don’t live in the path of totality, you shouldn’t wait much longer to book accommodation and travel to a spot on the path.

Or how about booking a seat in the sky? Delta Airlines made headlines for offering a flight that allows you to see the entire path of totality. Its first eclipse flight, from Austin, Texas, to Detroit sold out quickly. But as of Monday, Delta has added a second flight from Dallas to Detroit, which also covers the path of totality. The airline also has five flights that will offer prime eclipse viewing.

Not everyone can get on one of those elusive eclipse-viewing flights. Here’s a look at other options to nab a chance to see this rare sight and what to know about it.

Total solar eclipse path

The eclipse will cross over the Pacific coast of Mexico and head northeast over mainland Mexico. The eclipse will then make its way over San Antonio at approximately 2:30 p.m. ET on April 8 and move through Texas, over the southeastern part of Oklahoma and northern Arkansas by 2:50 p.m. ET.

By 3 p.m. ET, the eclipse will be over southern Illinois, and just 5 minutes later, will be traveling over Indianapolis. Folks in northwestern Ohio will be treated to the eclipse by 3:15 p.m. ET, and it will then travel over Lake Erie and Buffalo, New York, by 3:20 p.m. ET. Over the next 10 minutes, the eclipse will be seen over northern New York state, then over Vermont. By 3:35 p.m. ET, the eclipse will work its way into Canada and off the Eastern coast of North America.

Best places to watch the Great American Eclipse

When evaluating the best places to watch this year’s total eclipse, you’ll first want to determine where you’ll have the best angle to see the totality. The farther off-angle you are — in other words, the farther north or south of the eclipse’s path — the less of an impact you can expect.

Therefore, if you want to have the best chance of experiencing the eclipse, you’ll want to be in its path. As of this writing, most of the cities in the eclipse’s path have some hotel availability, but recent reports have suggested that rooms are booking up. And as more rooms are booked, prices are going up.

So if you want to be in the eclipse’s path, and need a hotel to do it, move fast. And Delta’s eclipse-viewing flight from Dallas to Detroit has just four seats left at the time of publication.

Eclipse eye safety and photography

 
As with any solar eclipse, it’s critical you keep eye safety in mind.

During the eclipse, and especially during the periods before and after totality, don’t look directly at the sun without special eye protection. Also, be sure not to look at the sun through a camera (including the camera on your phone), binoculars, a telescope or any other viewing device. This could cause serious eye injury. Sunglasses aren’t enough to protect your eyes from damage.

If you want to view the eclipse, you’ll instead need solar viewing glasses that comply with the ISO 12312-2 safety standard. Anything that doesn’t meet that standard or greater won’t be dark enough to protect your eyes. Want to get them for free? If you’ve got a Warby Parker eyeglasses store nearby, the company is giving away free, ISO-certified solar eclipse glasses at all of its stores from April 1 until the eclipse, while supplies last.

If you don’t have eclipse viewing glasses handy, you can instead use indirect methods for viewing the eclipse, like a pinhole projector.

Read more: A Photographer’s Adventure With the Eclipse

In the event you want to take pictures of the eclipse, attach a certified solar filter to your camera. Doing so will protect your eyes and allow you to take photos while you view the eclipse through your lens.

There’s also a new app to help you both protect your eyes and take better photos of the eclipse on your phone. Solar Snap, designed by a former Hubble Space Telescope astronomer, comes with a Solar Snap camera filter that attaches to the back of an iPhone or Android phone, along with solar eclipse glasses for protecting your eyesight during the event. After you attach the filter to your phone, you can use the free Solar Snap Eclipse app to zoom in on the eclipse, adjust exposure and other camera settings, and ultimately take better shots of the eclipse.

2024 eclipse compared to 2017

The last total solar eclipse occurred in 2017, and many Americans had a great view. Although there are plenty of similarities between the 2017 total solar eclipse and the one coming April 8, there are a handful of differences. Mainly, the 2024 eclipse is going to cover more land and last longer.

The 2017 eclipse started over the northwest US and moved southeast. Additionally, that eclipse’s path was up to 71 miles wide, compared with a maximum width of 122 miles for this year’s eclipse. Perhaps most importantly, the moon completely covered the sun for just 2 minutes, 40 seconds in 2017. This year, maximum totality will last for nearly four-and-a-half minutes.

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