Apple predicts small Japan hit, puts iPhone shortage behind it


Apple predicts small Japan hit, puts iPhone shortage behind it

Alex Scroxton

Apple has become the latest vendor to predict some material impact on future sales and earnings arising from the 11 March earthquake in Japan.

Speaking on Apple's Q2 2011 earnings call yesterday, COO Tim Cook said: "We believe revenues will be approximately $200m less in Q3, and this has been factored into the guidance.

"Regarding our global supply chain, we did not have any supply or cost impact in our fiscal Q2 as a result of the tragedy and we currently do not anticipate any material supply or cost impact in our fiscal Q3," continued Cook.

The iPhone supply constraints that affected Apple during the first quarter also seem to have eased in the past three months, according to CFO Peter Oppenheimer.

"We were able to make a significant increase in our capacity allowing us to expand distribution and get much-needed supply to our channel partners," said Oppenheimer.

"We ended the quarter with about 5.2 million iPhones in channel inventory, a sequential increase of about 1.7 million to support new carrier launches and existing channel partners.

"This placed us within our target range of four to six weeks of iPhone channel inventory," he concluded.

Enterprise sales, particularly of iPhones, grew over 100% year-on-year to 18.65 million devices, owing to "strong employee demand" in the enterprise space. Meanwhile, 3.76 million Macs flew off the shelves, up 28% on the year-ago period.

However, it was not all good news, iPod sales continued their decline - although Apple has effectively cannibalised iPod sales with the iPhone - and iPad sales fell off a cliff after demand far outstripped supply, coming in way below expectations with just 4.69 million sold.

Even so, the vendor powered to new quarterly records in both sales and profits, booking revenues of $24.67bn (£14.9bn) and net income of $5.99bn, up an astonishing 83% and 95% respectively on the same period last year.

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