Apple Inc. forecasted more troubles on Thursday as China’s COVID-19 lockdowns stymie production and demand, the war in Ukraine dampens sales, and development in services, which the iPhone manufacturer sees as its engine for expansion, slows.
In late trading, shares were down 2.2 percent after executives expressed their pessimism in a phone interview. The announcement overshadowed Apple’s (AAPL) fiscal second-quarter profit and sales records. Apple’s entire fiscal second-quarter revenue increased by 8.6% year over year.
COVID interruptions and a chip shortage centered supply concerns on a corridor in Shanghai, China. China’s demand was also impacted by the outbreak. The conflict in Ukraine, which forced Apple to halt sales in Russia, is expected to hurt sales even more in the fiscal third quarter.
After recent COVID shutdowns, almost all of Apple’s Chinese plants that handle final assembly have reopened, but the firm has given no indication when the chips scarcity, which is largely affecting older models, will end.
Cook expressed the hope that COVID concerns would be temporary and would improve over time. Despite Apple’s supply chain management in the March quarter, sustained demand remained a huge worry.
Other high-profile tech firms have expressed their concerns as well. The Nasdaq index, which includes Amazon and Apple, has dropped roughly 20% this year as rising inflation has pushed investors elsewhere.
As the situation in Ukraine and other reasons drive up the cost of oil, investors have been preparing for a reduction in consumer spending on computer products and services.
Tata Motors (TTM) wants to release electric vehicles with a required range of 310 miles and sophisticated technological features aimed at Indian and international buyers.
The business said during an event in Mumbai where it showed a concept model that the first automobiles based on its new model should be on the road by 2025.
Tata is attempting to align itself with major manufacturers who are pouring billions of dollars into developing electric cars (EVs) that meet more stringent climate change and emissions reduction targets.
The profit of CATL, the world’s biggest electric vehicle (EV) battery maker, fell by 24% in the first quarter.
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