Apple Predicts To Experience Bigger Supply Problems, Here's The Cause

A visitor holds a new color of an Apple iPhone 13 pro on 5th Avenue in Manhattan, New York, March 18, 2022. (REUTERS/MIKE FRESH)

JAKARTA - Apple expects its company to face bigger supply-related problems due to the COVID-19 "lockdown" in China, which is a key provider of supplying Apple products and the cessation of product sales due to the Russian invasion of Russia.

The company predicts that there will be a slowdown in the company's growth due to these problems and will eventually result in a decline in the shares of the technology giant.

Launching Reuters from Antara on Friday, April 29, the problem of stuck supply in Shanghai, China due to the "lockdown" caused by COVID-19 made it lack of steps to take new options.

Apple's Chief Executive Officer (CEO) Tim Cook is optimistic that if China is re-opened by the local government, the final assembly of Apple products will resume, although it has not been confirmed when the "lockdown" action in the Bamboo Curtain country will end.

He hopes that this problem will not drag on and be temporary so that it can get better from time to time.

Regarding the impact of Russia's invasion of Ukraine, Apple's Chief Financial Officer (CFO) Luca Maestri once revealed that as a result of the problem a larger sales decline would occur in the fiscal third quarter. He told analysts that supply chain problems would cost sales in the quarter by 4 billion. up to 8 billion US dollars and he expects to be hit substantially more than the second quarter.

In the midst of the pandemic conditions that are starting to improve, this does not seem to be good news for Apple because people have started doing activities in a hybrid manner so that the funds allocated for purchasing devices tend to decrease.

For example, as Apple mentioned that iPad sales fell 2 percent to 7.65 billion US dollars due to supply chain constraints.

However, complementary accessories still have good demand from the market, for example, Apple's loudspeakers recorded a 12 percent increase in sales to 8.8 billion US dollars.