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Apple expected losses due to China shutdowns

Apple losses

Washington D.C, (Business News Report)|| The American electronics company, Apple, expected that it will inflict losses in the second quarter of this year, due to closures in China.

Apple forecasts losses that range from 4 to 8 billion US dollars.

Bloomberg quoted Apple as saying during a conference call that China’s restrictions in recent weeks will cast a shadow over the quarter that ends next June.

These expectations have raised concerns that supply chain problems will continue to affect the technology industry globally in the wake of the short-term recovery from the pandemic.

Several companies involved in technology, such as Microsoft and Texas Instruments, have expressed concerns that China’s restrictions will affect sales and impede the manufacture of some important electronic devices, such as the Xbox game console, for example.

 “We are not immune to these challenges but we have great confidence in our teams, in our products and service and in our strategy,” Apple CEO Tim Cook said.

Apple shares fell 6.2% to $153.50 at the close of trading yesterday, after these expectations were announced.

Apple announced that its profits and sales in the second quarter exceeded analysts’ expectations, buoyed by strong demand for iPhones and digital services, and announcing the buyback of new shares worth $90 billion.

It said sales during that period rose 8.6% to $97.3 billion, a record quarterly without holidays. Analysts had expected sales to average $94 billion.

Earnings amounted to 1.52 dollars per share, compared to 1.42 dollars expected, which contributed to the increase in the company’s shares at the close of trading. The stock achieved significant gains of 3.9% in late trading.

Separately, Apple has officially opened its own self-service repair shop, which provides manuals and parts for users who are looking to fix their iPhones themselves.

The online store offers more than 200 individual parts and tools, such as iPhone screws, cameras, batteries, screens and more, allowing customers and third-party companies to access genuine Apple components for the first time. Previously, Apple users had to rely on the company’s in-house repair service or authorized repair centers to repair devices.

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