Apple Projects Shortages to Slash Sales by $4 Billion–$8 Billion

(Bloomberg) — Apple Inc. shares slid after the iPhone maker predicted that supply constraints would slash revenue by $4 billion to $8 billion during the current quarter, casting a pall on record-setting results that the company just reported.

Covid restrictions that have swept China in recent weeks will take a toll on the June quarter, Apple said Thursday during a conference call. The fiscal second quarter’s sales and profit topped analysts’ estimates, fueled by strong demand for iPhones and digital services, and the company announced $90 billion in new stock buybacks. The shares slipped less than 1% as the market opened Friday in New York.