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Apple experienced $6 billion in supply constraints in Q4 2021

Apple Park photo of the side of the main building
Apple Park photo of the side of the main building (Image credit: Apple)

What you need to know

  • Apple held its Q4 2021 earnings call today.
  • The company revealed it experienced $6 billion in supply constraints during the quarter.
  • The constraints impacted the Mac, iPhone, and iPad.

Earlier today, Apple hosted its Q4 2021 earnings call. During the call, Apple CEO Tim Cook revealed that it, along with virtually every company in the world, has been unable to avoid supply constraints.

In response to a question from Shannon Cross from Cross Research, Cook revealed that the company experienced $6 billion in supply constraints in the fourth quarter of 2021. According to Cook, the constraints affected the production of the iPhone, iPad, and Mac.

If you look at Q4 for a moment, we had about $6 billion in supply constraints, and it affected the iPhone, the iPad and the Mac. We had — there were two causes of them for Q4. One was the chip shortages that you've heard a lot about from many different companies through the industry. And the second was COVID-related manufacturing disruptions in Southeast Asia. The second of those, the COVID disruptions, have improved materially across October to where we currently are. And so for this quarter, we think that the primary cause of supply-chain-related shortages will be the chip shortage.It will affect — it is affecting, I should say, pretty much most of our products currently. But from a demand point of view, demand is very robust. And so part of this is the demand also is very strong. But we believe that by the time we finished the quarter that the constraints will be larger than the $6 billion that we experienced in Q4.

You can read about Apple's fourth-quarter earnings in our coverage here.

Joe Wituschek
Joe Wituschek

Joe Wituschek is a Contributor at iMore. With over ten years in the technology industry, one of them being at Apple, Joe now covers the company for the website. In addition to covering breaking news, Joe also writes editorials and reviews for a range of products. He fell in love with Apple products when he got an iPod nano for Christmas almost twenty years ago. Despite being considered a "heavy" user, he has always preferred the consumer-focused products like the MacBook Air, iPad mini, and iPhone 13 mini. He will fight to the death to keep a mini iPhone in the lineup. In his free time, Joe enjoys video games, movies, photography, running, and basically everything outdoors.