Apple’s Stock Tumbles on First Earnings Miss in 5 Years

CEO Tim Cook says supply issues cost company $6 billion

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For the first time since 2016, Apple’s earnings came in below Wall Street’s expectations, which sent the stock tumbling.

For the three months ending on Sept 25, Apple reported $83.4 billion in revenue, below Wall Street’s expectations of $84.85 billion. The tech giant also reported an earnings per share of $1.24, which matched projections.

Following the earnings, Apple’s stock tumbled in after hours trading, falling as much as 5%.

Apple CEO Tim Cook said that supply issues cost the company $6 billion.

Apple still managed to hit records for its full fiscal 2021 year in both revenue, with $365.8 billion, and net income with $94.7 billion.

“This year we launched our most powerful products ever, from M1-powered Macs to an iPhone 13 lineup that is setting a new standard for performance and empowering our customers to create and connect in new ways,” said Tim Cook, Apple’s CEO. “We are infusing our values into everything we make — moving closer to our 2030 goal of being carbon neutral up and down our supply chain and across the lifecycle of our products, and ever advancing our mission to build a more equitable future.”

“Our record September quarter results capped off a remarkable fiscal year of strong double-digit growth, during which we set new revenue records in all of our geographic segments and product categories in spite of continued uncertainty in the macro environment,” said Luca Maestri, Apple’s CFO. “The combination of our record sales performance, unmatched customer loyalty, and strength of our ecosystem drove our active installed base of devices to a new all-time high. During the September quarter, we returned over $24 billion to our shareholders, as we continue to make progress toward our goal of reaching a net cash neutral position over time.”

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