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

Major Amazon Prime Benefit Faces Crackdown Next Month

Amazon plans to end its Prime Invitee program soon. Here’s how this could affect your deliveries.

If you’re using a friend or family member’s free Prime shipping and you don’t live in the same household, you might need to pay another monthly cost. According to Amazon’s updated customer service page, first reported by The Verge, the retail giant is ending its Prime Invitee benefit-sharing program on Oct. 1.

Amazon isn’t the first company to prevent membership sharing between family and friends. The e-commerce giant is just the latest to follow Netflix’s account-sharing crackdown. We also saw it done with Disney-Plus last year. While it’s unclear whether this change will work for Amazon, Netflix gained over 200,000 subscribers following its policy change.

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Amazon’s Prime Invitee program is being replaced by Amazon Family, which includes many of the same benefits. However, Amazon Family only works for up to two adults and four children living in the same «primary residential address» — a shared home. While you’ll still be able to use free shipping to send gifts elsewhere, your Prime Invitees will no longer be able to use the perk.

Read more: More Than Just Free Shipping: Here Are 19 Underrated Amazon Prime Perks

What this means for you

If you’re the beneficiary of someone else’s Prime Invitee benefits, you have one more month to take advantage of the current program before the changes take effect.

Starting in October, you’ll have to get your own Amazon Prime subscription in order to benefit from the company’s free shipping program. First-time subscribers get a year of Prime membership for $15, but you’ll be stuck shelling out $15 a month to maintain your subscription thereafter.

Read more: Your Free Pass to Prime Day Deals (No Membership Required)

Why is Amazon ending the Prime Invitee program?

This move follows shortly after Reuters reported that Amazon’s Prime account signups slowed down recently despite an extended July Prime Day event. While the company reported blowout sales numbers, new Prime subscriptions didn’t meet internal expectations. In the US, they fell short of last year’s signup metrics.

According to Reuters, Amazon registered 5.4 million US signups over the 21-day run-up to the Prime Day event, around 116,000 fewer than during the same period in 2024, and 106,000 below the company’s own goal, a roughly 2% decline in both metrics.

By forcing separate households to have their own subscriptions, Amazon could be looking to attract more Prime accounts after previously failing to do so.

The new Amazon Family program (previously known as Amazon Household) offers Prime benefits to up to two adults and four children in a single home, including free shipping, Prime Video, Prime Reading, Amazon Music and more. The subscription also includes benefits for certain third-party companies, such as GrubHub.

Impulse Buys Under $25 on Amazon That Make Surprisingly Great Gifts

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Technologies

Premiere Pro for Free: How Adobe’s New iPhone App Will Let You Edit Videos at No Cost

Adobe Premiere users will only have to pay for extra AI credits and cloud storage.

Thanks to social media apps like TikTok and Instagram, everyone is an video editor these days. And soon you won’t have to sit down at a laptop to use one of the most popular video editors on the market.

Adobe announced on Thursday that it is releasing a new video editing iPhone app named Premiere on Sept. 30. You can preorder the app now in the Apple App Store, with an Android app currently in development.

The iOS app should feel familiar to Premiere users, with its multitrack timeline and preview screen. The app can be used for all your usual video editing: trimming clips, overlaying audio and adding synchronized captions. You can also use Adobe’s new voice-to-sound effects tool and record voiceovers.

Premiere should be a big upgrade for Adobe users who have only used Premiere Rush, a barebones version of its video editor. As more content creators become mobile-first, Adobe is hoping to draw them in with revamped mobile apps.

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You should be able to use the Premiere iOS app for free. Adobe says you may need to pay for generative AI credits and additional storage, like through Adobe Creative Cloud, though more pricing info is expected closer to the Sept. 30 launch. This is very different from the desktop app, which starts at $23 per month.

A truly free Premiere mobile app would be a win for content creators, especially for anyone who wants to explore editing in Premiere but doesn’t want to pay for another subscription.

In an era of mobile-first content creators, tech companies have raced to introduce user-friendly mobile editing apps. TikTok creators use the ever-popular CapCut, with Meta adding its own contribution, a new app called Edits. Adobe has long been the industry standard for professional content creation and editing, but its mobile offerings were usually less feature-packed versions of its flagship programs under different names.

That changed this year as Adobe released true mobile versions of Photoshop and Firefly AI. The new Premiere app helps Adobe make a competitive entrance in a crowded market, in addition to giving loyal Adobe users a new way to access their tools on the go.

Adobe has also been focused on integrating generative AI into its software. Premiere Pro got its first-ever AI tool, generative extend, which uses AI to add a few extra seconds to clips you upload. It’s meant to help smooth transitions between clips, particularly when you might have turned off the recording a smidge too early and need a few extra seconds of film.

AI is a contentious issue among creators, with some voicing concerns over the training and deployment of AI models. Adobe’s Firefly AI has been fully integrated into the new Premiere iOS app, though the company’s AI guidelines state that it never trains on customer data and that its AI-generated content is commercially safe.

For more, check out what to know about the iOS and Android Photoshop apps and good alternatives to CapCut.

Technologies

Today’s NYT Mini Crossword Answers for Saturday, Sept. 6

Here are the answers for The New York Times Mini Crossword for Sept. 6.

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

Today’s Mini Crossword is extra-long, as usual on Saturdays. And a couple of the clues were stumpers! Need answers? Read on. And if you could use some hints and guidance for daily solving, check out our Mini Crossword tips.

If you’re looking for today’s Wordle, Connections, Connections: Sports Edition and Strands answers, you can visit CNET’s NYT puzzle hints page.

Read more: Tips and Tricks for Solving The New York Times Mini Crossword

Let’s get to those Mini Crossword clues and answers.