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Apple reports Q4 Mac revenue of $9.18B, up 1.6% YoY, and iPad revenue of $8.25B, up 21.4% YoY, and says supply chain issues cost the company ~$6B in the quarter

Kif Leswing / CNBC :

CNBC Kif Leswing

Context & Ripple Effects

The comparable prior Q4 had already shown Macs and iPads expanding from their 2020 levels, with Mac and iPad sales rising year over year. This quarter preserves growth in both lines, but Apple explicitly quantifies supply constraints as a material drag on the company.

The category trajectory then became uneven: the following quarter brought stronger Mac growth alongside a year-over-year iPad decline, while later results recorded declines in both product lines. That makes the disclosed supply hit important as a constraint on how Apple converts product demand into reported revenue.

First-order effects

  • Apple records only modest year-over-year Mac growth despite $9.18 billion in revenue, while iPad delivers the quarter's stronger expansion at $8.25 billion.
  • Supply-chain disruption imposes an approximately $6 billion quarterly cost on Apple, directly limiting the revenue it can realize during the period.

Second-order effects

  • Apple's product mix becomes more sensitive to component availability: iPad's 21.4% growth offsets a far smaller Mac increase in the reported quarter.
  • Investors evaluating Apple’s hardware performance must separate category demand from availability, as the next quarter's diverging Mac and iPad results demonstrate how quickly reported growth can shift by product line.

Third-order effects

  • Repeated swings between growth and contraction in Mac and iPad revenue point to hardware reporting in which supply execution can materially reshape product mix, not merely delay sales.
  • If that pattern persists, Apple’s ability to smooth component availability becomes a larger determinant of quarterly hardware results than a single category’s year-over-year growth rate.

The trend: Apple’s hardware business is becoming more exposed to supply-driven product-mix volatility, making fulfillment capacity central to quarterly revenue performance.

Discussion

  • @vadimyuryev Vadim Yuryev on x
    Mac is low because everyone was holding off for the M1 Pro/Max Macs lol https://twitter.com/...
  • @neilcybart Neil Cybart on x
    Tim Cook: Our customers appreciate ATT (app tracking transparency). There is an outpouring of customer satisfaction there.
  • @drbarnard David Barnard on x
    The question wasn't about _customers_. But even then I don't think must customers would be happy to realizes Apple isn't even enforcing ATT as would be expected (not policing fingerprinting). And few define “tracking” as narrowly as Apple does. https://twitter.com/...
  • @growth_value_ @growth_value_ on x
    As expected. This earnings season is brutal. Consumer stocks are in dangerous territory https://twitter.com/...
  • @neilcybart Neil Cybart on x
    Tim Cook: We estimate supply constraints amounted to $6 billion of revenue. (That means customer demand would have supported Apple reporting $89 billion of revenue in 4Q21.)