Amazon and Apple warn of supply chain issues
Amazon CEO Andy Jassy warned in a statement that, in the upcoming fourth quarter, the company's consumer business expects to incur several billion dollars of additional costs.
Even Amazon and Apple are grappling with the global supply chain crunch.
Both companies reported revenue results on Thursday that fell short of Wall Street analysts' expectations and warned that supply chain issues could weigh on business in the December quarter.
Amazon missed Wall Street projections for both sales and profit for the three months ended September 30 — a rare miss for the internet giant. It posted net sales of $110.8 billion, up 15% from the same period a year earlier, but below analyst projections of $111.6 billion. Net income for the quarter decreased from the prior year to $3.2 billion, well short of the $4.6 billion analysts expected.
Amazon CEO Andy Jassy warned in a statement that, in the upcoming fourth quarter, the company's consumer business expects to incur several billion dollars of additional costs. Those costs, he said, come "as we manage through labor supply shortages, increased wage costs, global supply chain issues, and increased freight and shipping costs — all while doing whatever it takes to minimize the impact on customers and selling partners this holiday season."
Apple posted quarterly sales of $83.4 billion, slightly lower than analysts had anticipated. iPhone sales were lower than analyst forecasts, too, coming in at $38.9 billion.
In a conference call with analysts after reporting the results, CEO Tim Cook focused on the fact that Apple managed to post a quarterly sales record despite the supply constraints. "Demand was very robust," he said, but he also noted that "larger-than-expected supply constraints," including silicon shortages and a "related manufacturing disruption," had a $6 billion negative impact on the business.